The SEC won a default judgment against Thor Technologies and its founder

Tor Technology and its founder and former CEO David Chin are facing an ongoing dispute with the United States Securities and Exchange Commission (SEC) over the unauthorized sale of $2.6 million in crypto asset securities.

On October 19, the SEC announced its victory after the default judgment against Chin and Tor was issued in the US District Court for the Northern District of California, San Francisco, on Wednesday, October 18. A default judgment is a legal decision made by a court when a party to a lawsuit fails to respond or defend their case within a specified legal time limit. This usually happens when the defendant does not file an answer to the plaintiff's complaint or when it is brought to court as required.

According to a complaint filed with the SEC on December 21, 2022, Chin and Tor Technologies raised $2.6 million from approximately 1,600 investors between March and May 2018. This funding is a software platform intended for gig economy workers and companies. The SEC's contention is that the offers and sales of Tor tokens were not registered with the SEC and were advertised as investment opportunities.

These funds were obtained by selling the THOR cryptocurrency, which has approximately 200 investors in the United States. The SEC accused Chin and Tor of violating federal securities laws by selling unregistered Tor tokens without meeting the requirements for exemption.

The SEC also alleged that Chin and Tor provided inaccurate and misleading information to investors regarding the project's progress, collaboration and revenue. In the year In April 2019, following the announcement that it would be ceasing operations due to regulatory hurdles, Chin confirmed that they would continue to strategize and pay investors. Despite this promise by Chin, the SEC confirmed that he did not return any money to investors but instead transferred some of the proceeds to his personal bank account.

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As part of the judgment, Chin and Tor were ordered to pay $903,193.06, which includes $744,555 in disgorgement and $158,638.06 in prejudgment interest. This reduces the total amount of money collected from investors.

In addition, permanent injunctions have been implemented against China and Tor, preventing them from participating in future crypto asset securities. However, Chin is free to buy or sell securities from his personal account.

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