Kik has agreed to pay a $5 million penalty to the United States’ Securities Exchange Commission (SEC) to end ICO lawsuit.
Kik Interactive, the Canadian crypto startup that raised $100 million from a 2017 initial coin online offering, is a step closer to end its years-long battle with the US regulators. Yesterday, the SEC revealed a proposed settlement with Kik that involves civil penalties, as well as limitations for any future plans to revive its crypto ambitions.
Kik CEO Ted Livingston
According to a court document, the final judgment still requires ratification from the judge presiding over the case.
The court document notes:
“The parties have reached agreement on a proposed judgment, and file herewith a Consent executed by Kik Interactive Inc. (Exhibit A) and a proposed Final Judgment (Exhibit B). The proposed Final Judgment, if approved by the Court, would permanently enjoin Kik from committing future violations of Section 5, pursuant to Section 20(b) of the Securities Act of 1933, 15 U.S.C. § 77t(b); impose a conduct-based injunction, as set forth in the proposed Final Judgment, under Section 21(d)(5) of the Securities Exchange Act of 1934, 15 U.S.C. § 78u(d)(5); and require Kik to pay a penalty of $5 million, pursuant to Section 20(d) of the Securities Act, 15 U.S.C. § 77t(d). The proposed Final Judgment would conclude this action.”
Kin began as a cryptocurrency token issued on the public Ethereum blockchain through Kik. The launch of the currency marked a major pivot in Kik’s strategy after the company faced increased competition from larger social networks like Facebook.
Earlier in October, Kik founder Ted Livingston stated his disappointment in the ruling, noting that Kik was considering an appeal.
Kin token price 7 days | Source: Coinmarketcap
Kin is up nearly 100% in the last 24 hours, with a trading volume of $392,657 USD, the highest in the 16 month-long court case.
Read more:
- SEC Requested Early Summary Judgment In Kik’s $ 100 Million ICO Lawsuit From 2017
- The Next Investigation Target Of SEC Is Kik’s Digital Assets