SEC wins default judgment against Thor Technologies and founder
Thor Technologies, under the leadership of its founder David Chin, has faced a legal setback in an ongoing dispute with the U.S. Securities and Exchange Commission (SEC) over the unapproved sale of $2.6M in crypto asset securities.
The SEC on Oct. 19 announced their victory after a default judgment was issued against Chin and Thor by a San Francisco district court on Wednesday, Oct.18. A default judgment is a legal ruling issued by a court when one party in a lawsuit fails to respond or defend their case within the specified legal time frame. This typically occurs when the defendant does not file an answer to the plaintiff’s complaint or does not appear in court as required.
As per the complaint filed by the SEC on Dec. 21, 2022, Chin and Thor Technologies raised $2.6 million from approximately 1,600 investors between March and May 2018. This funding was intended for a software platform aimed at gig economy workers and companies. The SEC’s contention is that the offers and sales of Thor Tokens were not registered with the SEC and were promoted as investment opportunities.
These funds were generated through the sale of the Thor (THOR) coin, with about 200 of these investors residing in the United States. The SEC accused Chin and Thor of violating federal securities laws by issuing and vending unregistered Thor Tokens without meeting the requirements for an exemption.
Furthermore, the SEC asserted that both Chin and Thor provided investors with inaccurate and deceptive information concerning the project’s advancements, collaborations and income. In April 2019, following their announcement of halting operations due to regulatory obstacles, Chin assured investors of repayment while devising a strategy. Despite this commitment by Chin, the SEC found that he did not reimburse any funds to investors but instead redirected some earnings into his personal bank account.
Related: Community reacts to SEC dropping XRP case and LBRY shutdown
As part of the judgment, they have been instructed to pay a sum of $903,193.06, which encompasses a disgorgement of $744,555 and prejudgment interest amounting to $158,638.06. This reflects the total funds they gathered from investors minus the amount they repaid.
Additionally, permanent injunctions have been enforced against Chin and Thor, preventing their involvement in any future offerings of crypto asset securities. Notably, Chin retains the freedom to buy or sell securities for his personal account.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?
According to the US Department of Justice, Wolf Capital’s co-founder has pleaded guilty to wire fraud conspiracy for luring 2,800 crypto investors into a Ponzi scheme.
Making Britain better off will be “at the forefront of the chancellor’s mind” during her visit to China, the Treasury has said amid controversy over the trip.
Rachel Reeves flew out on Friday after ignoring calls from opposition parties to cancel the long-planned venture because of market turmoil at home.
The past week has seen a drop in the pound and an increase in government borrowing costs, which has fuelled speculation of more spending cuts or tax rises.
The Tories have accused the chancellor of having “fled to China” rather than explain how she will fix the UK’s flatlining economy, while the Liberal Democrats say she should stay in Britain and announce a “plan B” to address market volatility.
However, Ms Reeves has rejected calls to cancel the visit, writing in The Times on Friday night that choosing not to engage with China is “no choice at all”.
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The chancellor will be accompanied by Bank of England governor Andrew Bailey and other senior executives.
She will meet with her counterpart, Vice Premier He Lifeng, in Beijing on Saturday to discuss financial services, trade and investment.
She will also “raise difficult issues”, including Chinese firms supporting Russia’s invasion of Ukraine and concerns over constraints on rights and freedoms in Hong Kong, the Treasury said.
But it did not mention whether Ms Reeves would raise the treatment of the Uyghur community, which Downing Street said Foreign Secretary David Lammy would do during his visit last year.
Britain’s Foreign Secretary David Lammy and Chinese Foreign Minister Wang Yi in Beijing. Pic: AP
On Friday, Culture Secretary Lisa Nandy defended the trip, telling Sky News that the climbing cost of government borrowing was a “global trend” that had affected many countries, “most notably the United States”.
“We are still on track to be the fastest growing economy, according to the OECD [Organisation for Economic Co-operation and Development] in Europe,” she told Anna Jones on Sky News Breakfast.
“China is the second-largest economy, and what China does has the biggest impact on people from Stockton to Sunderland, right across the UK, and it’s absolutely essential that we have a relationship with them.”
Read more – Ed Conway analysis: The chancellor’s gamble with China
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Nandy defends Reeves’ trip to China
However, former prime minister Boris Johnson said Ms Reeves had “been rumbled” and said she should “make her way to HR and collect her P45 – or stay in China”.
While in the country’s capital, Ms Reeves will also visit British bike brand Brompton’s flagship store, which relies heavily on exports to China, before heading to Shanghai for talks with representatives across British and Chinese businesses.
It is the first UK-China Economic and Financial Dialogue (EFD) since 2019, building on the Labour government’s plan for a “pragmatic” policy with the world’s second-largest economy.
Sir Keir Starmer was the first British prime minister to meet with China’s President Xi Jinping in six years at the G20 summit in Brazil last autumn.
Relations between the UK and China have become strained over the last decade as the Conservative government spoke out against human rights abuses and concerns grew over national security risks.
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How much do we trade with China?
Navigating this has proved tricky given China is the UK’s fourth largest single trading partner, with a trade relationship worth almost £113bn and exports to China supporting over 455,000 jobs in the UK in 2020, according to the government.
During the Tories’ 14 years in office, the approach varied dramatically from the “golden era” under David Cameron to hawkish aggression under Liz Truss, while Rishi Sunak vowed to be “robust” but resisted pressure from his own party to brand China a threat.
The Treasury said a stable relationship with China would support economic growth and that “making working people across Britain secure and better off is at the forefront of the chancellor’s mind”.
Ahead of her visit, Ms Reeves said: “By finding common ground on trade and investment, while being candid about our differences and upholding national security as the first duty of this government, we can build a long-term economic relationship with China that works in the national interest.”
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