- SEC secures a default judgment against Thor Technologies and David Chin over a $2.6 million unregistered crypto offering.
- The judgment bars both parties from engaging in any crypto asset securities offerings.
A Long-Awaited Triumph for the SEC
In what can be termed as a procedural triumph for the U.S. Securities and Exchange Commission (SEC), the regulatory body has attained a default judgment against Thor Technologies and its principal founder, David Chin. Stemming from accusations of orchestrating an unregistered crypto asset securities offering to the tune of $2.6 million, this judgment has been long in the making, with charges initially laid out against Thor Technologies back in December 2022.
Decoding the Default Judgment Phenomenon
For those navigating the labyrinthine corridors of legal jargon, the term “default judgment” might present as an enigma. At its core, a default judgment emerges when one of the parties involved in litigation fails to play their part, be it missing a trial or neglecting to file requisite documentation within the mandated time frame.
Shining a spotlight on the specifics of this case, the SEC’s contention against Thor and Chin revolved around their endeavor to raise capital for a novel software platform catering to the gig economy. Their instrument of choice? “Thor Tokens”. However, where they faltered was in the absence of the necessary registration with the SEC for such an offering, even as these tokens were peddled to potential investors as a golden investment avenue.
The narrative took a further twist when, in April 2019, Thor Technologies declared the cessation of its operations, citing a maze of regulatory impediments as the primary reason.
While the default judgment against Thor and Chin might symbolize a setback for them, it’s crucial to understand the parameters of the court’s directive. Besides precluding both entities from diving into any further crypto asset securities offerings, the court has also decreed a disgorgement amounting to $744,555, complemented by a prejudgment interest valued at $158,638.06.
However, a silver lining for Chin exists in the form of the judgment not prohibiting him from either buying or vending securities, inclusive of crypto-asset securities, strictly for his individual account.
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