Court Decision Fines Thor Technologies Approximately $1 Million
Date: 2023-10-21 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Thor Technologies Accused of Unlawful Token Trading
The court decision rendered by the Northern District of California in San Francisco holds Thor Technologies and its founder, David Chin, accountable. They were accused of engaging in unlawful cryptocurrency trading worth $2.6 million. The saga began in the period from March to May 2018 when the platform was selling THOR tokens, which were not registered with the U.S. Securities and Exchange Commission (SEC). These actions marked the beginning of a protracted legal battle.
Initially, the organizers of the THOR token sale presented them as an investment opportunity, promising future availability on cryptocurrency exchanges. Through their activities, Thor Technologies managed to attract $2.6 million from 1,600 investors. However, in April 2019, they announced the shutdown of the project due to regulatory issues. At that time, David Chin assured investors that their funds would be returned.
Court Decision and Punishment for Thor Technologies
In this scenario, the defendants failed to mount a proper defense in court, and the judge ruled in favor of the plaintiffs by default, resulting in a fine of around $1 million for Thor Technologies. This sum includes compensation of $744,000 for damages and pre-judgment interest of $158,000. Furthermore, the court ordered Thor Technologies and David Chin to refrain from participating in securities offerings.
However, it's worth noting that this decision does not restrict David Chin from freely purchasing cryptocurrencies and trading them from his personal account. Therefore, he retains the freedom to engage in cryptocurrency-related activities.
SEC and its Fight Against Violations in the Cryptocurrency Industry
The court decision regarding Thor Technologies is part of a broader SEC campaign to combat violations in the cryptocurrency industry. The SEC plays a crucial role in regulating financial markets in the United States and addressing securities-related violations.
It's important to emphasize that the SEC doesn't always emerge victorious in its legal battles. Recently, they decided not to appeal a court ruling in favor of Grayscale Investments. This decision paves the way for the transformation of the Grayscale Bitcoin Trust (GBTC) from a trust fund into a spot Bitcoin ETF, which holds significant implications for the cryptocurrency market.
