The US Securities and Exchange Commission (SEC) has accused the organizers of the Thor Technologies cryptocurrency project of conducting an unregistered ICO in the amount of $2.6 million.
According to an SEC complaint filed in the U.S. District Court for the Northern District of California, in 2018, Thor Technologies CEO David Chin and former CTO Matthew Moravec held a fundraiser to develop an economic platform for organizations and freelancers.
The regulator claims that Thor tokens were sold not only to finance 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. At the time of the release and sale of Thor, the development of the platform did not even begin, and there was no practical use for tokens.
Given that Thor Technologies is not registered with the SEC, the agency is seeking an injunction against the company's activities. In addition, the regulator requires the company to return to investors $2.6 million that could have been fraudulently obtained, as well as to pay interest for the period before the court decision and an administrative fine.
Moravec agreed to settle the dispute with the SEC, expressing willingness to pay $407,103, interest in the amount of $72,209 and an administrative fine of $95,000. For three years, Moravec will not be able to organize offers for the purchase of crypto assets.
The SEC filed charges against Thor Technologies after Gary Gensler's statements 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.