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US SEC Accuses Thor Founders Of Selling Unregistered Securities

David Chin and Matthew Moravec, the founder and co-founder of Thor Technologies, respectively, are the latest individuals to come under the regulatory scrutiny of the US SEC.

The securities commission accused these executives of offering and selling unregistered Thor securities tokens. Meanwhile, Thor Technologies is different from Thor Blockchain.

SEC Alleged That Both Individuals Made $2.6M From The Sales 

On Wednesday, the US SEC filed a lawsuit against the Thor founders in San Francisco’s US District Court. The lawsuit stated that Chin and Moravec sold the tokens from March to May 2018.

According to the SEC, the company realized over $2.6 million from 1600 investors. Meanwhile, not all the investors lived in the US. 200 out of 1600 lived in America, while others were not accredited.

Thor sold the tokens to raise funds to develop its software platform, the gig economy. Unfortunately, the dream did not come to reality.

Both founders pushed the Thor tokens on various platforms. They promised users that the token’s value would shoot up soon.

Also, they allegedly misled investors, assuring them that various exchanges would list the token. They took these steps to lure unsuspecting investors looking to invest their money.

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SEC noted that the business had no operational Thor platform where users could trade the coins. Also, there were never available for trading on other platforms.

Furthermore, the commission agreed that both defendants failed to register the token. Hence, they were not qualified to sell those tokens as securities.

Moravec Agrees To Settle With The SEC 

Responding to the accusation, Thor said it closed the company in 2019. This was after the business gained no attention and achieved no success.

Based on Chin’s LinkedIn profile, the company claims to produce mobile applications and own SaaS platforms. However, SEC argued that the company was never dissolved.

SEC’s filing shows that the regulator is seeking civil penalties against both individuals, injunctive relief, prejudgment interest, and the return of the ill-gotten wealth

In another complaint, the securities watchdog claimed that Moravec sold unregistered Thor tokens. This contravened Sections 5(a) and 5 (c) of the 1933 US Securities Act.

Meanwhile, Moravec has pleaded guilty to the charges and agreed to settle with the regulator. As part of the proposed deal, Moravec would not participate in any ICO for three years.

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In addition, he will pay a civil penalty, prejudgment interest, and ejection of $95,000, $72,209.45, and $407,103, respectively. However, the proposal is still pending approval by the court.


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Bradley Nelson

Bradley Nelson is a US based cryptocurrency news writer for Tokenhell, he helps readers stay up to date with the latest trends and news from the blockchain and crypto world. Bradley has been a crypto enthusiast since 2018.

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