The US Securities and Exchange Commission (SEC) seems to have targeted many crypto money projects today. Apart from the developments regarding the bankrupt Bitcoin and altcoin exchange FTX, the SEC announced that it is suing an altcoin. Here are the details…
SEC sue this altcoin project
The United States Securities and Exchange Commission (SEC), with David Chin, co-founder and CEO of Thor Technologies, announced that Thor’s 2018 initial coin offering (ICO) was an unregistered sale of securities under the Securities Act of 1933. filed a complaint claiming that Thor Technologies raised $2.6 million from 1,600 investors through the sale of the Thor (THOR) coin between March and May 2018.
About 200 of the 1,600 investors lived in the United States. Most were not accredited investors. The SEC claimed in the lawsuit that the ICO constituted a sale of securities. The complaint, filed Dec. 21 in the US District Court in San Francisco, states that Thor claims it will develop a software platform for “gig economy” companies and their employees. However, it is stated that this aim was never fulfilled. The SEC used the following statements:
Thor marketed Thor Tokens to investors who reasonably saw it as an investment vehicle that could gain value based on Thor and Chin’s managerial and entrepreneurial efforts in developing the flexible economy software platform.
SEC sues multiple cryptocurrency projects
According to the SEC, the tokens had no practical use at the time of the offering. The business closed in 2019 because it “failed to gain momentum and achieve commercial success.” According to Chin’s LinkedIn profile, Thor Technologies now also produces Odin’s “software as a service” (SaaS) platform and mobile app. The project in question should not be confused with THORChain. The popular cryptocurrency currently in operation goes by the name RUNE. It has nothing to do with the project the SEC is suing.
This is the latest in a series of similar charges brought against crypto operators by the SEC. As we reported as Kriptokoin.com, the institution announced in June that it is investigating Binance’s 2017 ICO. LBRY announced in early December that it would likely lose against the SEC over accusations of selling unregistered securities. He said this would likely lead to the platform being shut down.
Currently, the SEC’s biggest lawsuit in terms of cryptocurrency projects is Ripple. As is known, the securities lawsuit filed in December 2020 is still ongoing. The SEC alleges that Ripple is selling XRPs as “non-registered securities”. The agency announced in a statement that Thor co-founder and one-time chief technology officer Matthew Moravec has agreed with the SEC and agreed to injunctive relief and fines.
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