In a win against the crypto industry, the US Securities and Exchange Commission (SEC) has obtained a default judgment against Thor Technologies and its founder David Chin.
According to court documents, Thor Technologies and Chin were found guilty of conducting an unregistered offering of crypto asset securities amounting to $2.6 million.
SEC Prevails In Unregistered Crypto Offering Lawsuit
The judgment was issued by a San Francisco district court, which permanently restrains and enjoins the defendants from violating Sections 5(a) and 5(c) of the Securities Act of 1933.
These sections pertain to the sale and offering of what the SEC denominates as “crypto securities” without proper registration or exemption.
In the legal context, a default judgment is a judgment entered by a court in favor of one party (SEC) when the opposing party fails to respond or appear in court.
It occurs when the defendant in a lawsuit fails to file a response, answer, or defense within the specified time frame or fails to appear in court after being properly served with a summons and complaint.
Additionally, the court ordered Thor and Chin to refrain from participating in any “crypto asset securities offering”. However, the injunction does not prevent Chin from engaging in “personal securities transactions”.
The court imposed a civil monetary penalty of $150,000 on Chin and ordered Thor to pay a disgorgement of $744,555, along with prejudgment interest of $158,638.06. Both Thor and Chin
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Author: Ronaldo Marquez
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