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?
Current laws in the United States do not explicitly protect open source software developers and create the risk of retroactive prosecution.
Jeremy Kranz, founder of Sentinel Global, a venture capital firm, said investors should be “discerning” and read the fine print on any stablecoin.
Politics
Labour deputy leadership candidate accuses opponent’s team of ‘throwing mud’ and briefing against her
Lucy Powell has accused Bridget Phillipson’s team of “throwing mud” and briefing against her in the Labour deputy leadership race in a special episode of Sky’s Electoral Dysfunction podcast.
With just days to go until the race is decided, Sky News’ political editor Beth Rigby spoke to the two leadership rivals about allegations of leaks, questions of party unity and their political vision.
Ms Powell told Electoral Dysfunction that through the course of the contest, she had “never leaked or briefed”.
But she said of negative stories about her in the media: “I think some of these things have also come from my opponent’s team as well. And I think they need calling out.
“We are two strong women standing in this contest. We’ve both got different things to bring to the job. I’m not going to get into the business of smearing and briefing against Bridget.
“Having us airing our dirty washing, throwing mud – both in this campaign or indeed after this if I get elected as deputy leader – that is not the game that I’m in.”
Ms Powell was responding to a “Labour source” who told the New Statesman last week: “Lucy was sacked from cabinet because she couldn’t be trusted not to brief or leak.”
Ms Powell said she had spoken directly to Ms Phillipson about allegations of briefings “a little bit”.
Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News’ Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters
Phillipson denies leaks
But asked separately if her team had briefed against Ms Powell, Ms Phillipson told Rigby: “Not to my knowledge.”
And Ms Phillipson said she had not spoken “directly” to her opponent about the claims of negative briefings, despite Ms Powell saying the pair had talked about it.
“I don’t know if there’s been any discussion between the teams,” she added.
On the race itself, the education secretary said it would be “destabilising” if Ms Powell is elected, as she is no longer in the cabinet.
“I think there is a risk that comes of airing too much disagreement in public at a time when we need to focus on taking the fight to our opponents.
“I know Lucy would reject that, but I think that is for me a key choice that members are facing.”
She added: “It’s about the principle of having that rule outside of government that risks being the problem. I think I’ll be able to get more done in government.”
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Insider vs outsider
But Ms Powell, who was recently sacked by Sir Keir Starmer as leader of the Commons, said she could “provide a stronger, more independent voice”.
“The party is withering on the vine at the same time, and people have got big jobs in government to do.
“Politics is moving really, really fast. Government is very, very slow. And I think having a full-time political deputy leader right now is the political injection we need.”
The result of the contest will be announced on Saturday 25 October.
The deputy leader has the potential to be a powerful and influential figure as the link between members and the parliamentary Labour Party, and will have a key role in election campaigns. They can’t be sacked by Sir Keir as they have their own mandate.
The contest was triggered by the resignation of Angela Rayner following a row over her tax affairs. She was also the deputy prime minister but this position was filled by David Lammy in a wider cabinet reshuffle.
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