The US Securities and Exchange Commission (SEC) accused the organizers of the Thor Technologies cryptocurrency project of conducting an unregistered ICO worth $2.6 million.
Thor Technologies CEO David Chin and former CTO Matthew Moravec held a fundraiser in 2018 to develop an economic platform for organizations and freelancers, according to an SEC complaint filed in the U.S. District Court for the Northern District of California.
The regulator claims that Thor tokens were sold not only to fund the platform, but also as an investment opportunity, thanks to which investors will be able to sell them on cryptocurrency exchanges at an inflated rate. During the release and sale of Thor, the development of the platform did not even begin, and there was no practical use for the tokens.
Given that Thor Technologies is not registered with the SEC, the agency is seeking an injunction against the company. In addition, the regulator requires the company to return to investors $ 2.6 million that could have been obtained fraudulently, as well as pay interest pre-judgment interest and an administrative fine.
Moravec agreed to settle the dispute with the SEC, expressing a willingness to pay $407,103, $72,209 in interest, and a $95,000 administrative fine. For three years, Moravec will not be able to organize offers to buy crypto assets.
The SEC filed charges against Thor Technologies after claims by Gary Gensler that issuers of digital assets are required to comply with the requirements applicable to traditional financial companies. According to him, cryptocurrencies need to be regulated on a par with the stock market.
Source: Bits
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