Under the direction of Gary Gensler, the United States Securities and Exchange Commission (SEC) is continuing its investigation into cryptocurrency projects suspected of selling unregistered securities. One of these projects is the unsuccessful Thor Technologies protocol.
According to accusations filed (1) by the SEC on December 21 in the United States District Court for the Northern District of California, Thor Technologies allegedly stated that it would "create a software platform for 'gig economy' enterprises and workers." Despite this, the platform above was never finished.
The SEC Against Thor Technologies
Notably, the SEC has been conducting investigations against cryptocurrency exchanges in preparation for the booming ICO industry in 2018. The SEC stated in June this year that it would investigate Binance's 2017 Initial Coin Offerings (ICO).
According to the Securities and Exchange Commission, Thor Technologies scammed 1,600 investors, with 200 of those investors hailing from the United States.
According to the information provided by the SEC,
" Thor marketed the Thor Tokens to investors who reasonably viewed the Thor Tokens as an investment vehicle that might appreciate in value based on Thor's and Chin's managerial and entrepreneurial efforts in developing the gig economy software platform."
In addition to bringing charges against the company itself, the SEC also brought charges against David Chin, co-founder and CEO of Thor, and Matthew Moravec, co-founder of Thor and former Chief Technology Officer.
Per SEC, Moravec has agreed to pay for a decision against him that will impose permanent and conduct-based injunctions. One of these injunctions includes a prohibition against partaking in any offering of a cryptocurrency asset security for three years.
In addition, the settlement mandated that he pay a civil penalty of $95,000 in addition to the previously mentioned restitution of $407,103 and prejudgment interest in the amount of $72,209.45. Nevertheless, the settlement is dependent on the approval of the court.
The SEC is 'All-in' against Crypto
The cryptocurrency market has drawn traders from around the world looking to make enormous returns with relatively small investments. In addition, the proliferation of meme currencies is undeniable evidence of rampant greed within the sector.
The collapse of Terra Luna and FTX, which resulted in a total loss of more than $60 billion, prompted the Securities and Exchange Commission to boost the number of people it employs to monitor the cryptocurrency market.
On November 7, the judge ruled that LBC tokens are unregistered securities, which resulted in the SEC becoming victorious in its fight against LBRY Inc., much to many people's astonishment.
After getting defeated by SEC, the LBRY company no longer has any faith in its ability to succeed in the future.
"It is highly likely that we shall perish in the not-too-distant future. We anticipate that the LBRY mission will carry on, but the company itself has been rendered inoperable by legal and SEC obligations," the company stated.
As 2023 approaches closer, everyone's attention is focused on the Ripple vs. SEC lawsuit, which will significantly influence the market as a whole. Additionally, twelve cryptocurrency companies, notably Coinbase Global Inc, have filed amicus papers supporting Ripple in its ongoing legal battle against the SEC.