SEC requested early summary judgment in Kik’s $ 100 million ICO lawsuit from 2017
The US Securities and Exchange Commission (SEC) requested early summary ruling from the Court in a lawsuit against Kik about the company’s $100M KIN ICO in 2017.
The SEC first filed a lawsuit against Kik in June 2019. The committee argued that the company’s ICO was clearly a security issue. While Kik sought to declare that KIN was a currency and not a security, SEC states that they have undeniable evidence.
“Kik’s 2017 offering and sale Kin is an offering and sale of investment contracts to the public, which not registered with the SEC and exempt from registration under the act.”
Kik sold over half a trillion tokens to investors outside of Canada and raised $ 100 million through an ICO in September 2017.
The commission accused Kik blatantly informing investors that the KIN price will increase along with the increasing demand for tokens – violating the Securities Act blatantly through “sweet words” about profit expectations for investors.
The SEC is working on a permanent ban on the Canadian company, in addition to penalties, to repay Kik’s illicit benefits.
The lawsuit exacerbated Kik’s financial disaster
The lawsuit has exacerbated Kik’s economic woes; the company announced it would close its free messaging service in September last year. The messaging platform was purchased by US-based MediaLab in October of the same year.
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