The United States Securities and Exchange Commission (SEC Securities and Exchange Commission (SEC) The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha Read this Term) announced on Wednesday that it had charged Thor Technologies, Inc. and its co-founders with conducting an unregistered sale of securities in the form of an initial coin offering (ICO).

SEC Takes Aim at ICO, Thor Technologies

According to the regulator's complaint published yesterday, David Chin and Matthew Moravec offered and sold a cryptocurrency named Thor (THOR) between March and May 2018. The purpose of the ICO was to raise funds to develop a platform for companies and workers in the 'gig' economy.

Chin promoted the tokens as an investment opportunity and suggested a potential increase in value once THOR hits popular exchanges and trading platforms. However, according to the SEC, no development work was underway at the time of the offering.

Thor Technologies have raised $2.6 million in cryptocurrencies and cash from 1,600 investors without having the proper licenses and authorizations issued by the SEC. The Commission filed an indictment in the U.S. District Court for the Northern District of California, suggesting that the company and Chin violated the securities registration provisions of the Securities Act of 1933.

"The SEC seeks injunctive relief, the return of allegedly ill-gotten gains plus prejudgment interest, and civil penalties," the Commission stated.

Moravec has heard similar charges but has already decided to settle. Under the settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term, he cannot engage in cryptocurrency activities for three years, must pay a fine of $95,000 and disgorge $407,103 plus prejudgment interest of $72,209.45.

ICO Industry Pays For Past Sins, Thor Token in Crosshairs

The ICO industry experienced a real boom in 2017-2018 with the rise in cryptocurrency demand. However, when the crypto winter arrived, the popularity of funding projects by issuing new digital tokens fell to zero.

During the ICO craze, the SEC warned of the risks associated with ICOs, suggesting that many offerings resembled securities, for which appropriate authorizations are necessary. Moreover, some of them bore the hallmarks of potential fraud. Although years have passed, rogue ICO promoters are still paying for their past sins.

In July, the U.S. Department of Justice announced that the Founder of the $21 million ICO scam of Titanium Blockchain Infrastructure Services pled guilty to his crime. He is facing up to 20 years in prison for his offences and defrauding investors.

Earlier this year, the SEC convicted the owner of Crowd Machine and Metavine for fraudulently raising $40.7 million via ICO. According to the regulator, he presented false and inaccurate information for an unregistered offering.

ICO industry data shows the brutal truth: only 25% of projects met their goals, the average ICO did not survive more than two months, and 70% of all ideas turned out to be scams.