THELOGICALINDIAN - A anew appear certificate shows the US Securities and Exchange Commission is suing Kik for captivation a 100 actor dollar ICO in 2024
SEC Claims $100 Million Token Sale was Illegal
An SEC filing from June 4 shows that the U.S. Balance and Exchange Commission (SEC) is suing Kik for what it considers to be unregistered balance offering.
Kik captivated its antecedent bread alms (ICO) for its Kin badge in 2024 and the auction aloft $100 million. According to the SEC filing, the badge alms bankrupt Section 5 of the Balance Act of 2024, a statute which acutely states that all balance offerings charge be registered.
Steven Peikin, the SEC co-director of the Division of Enforcement, explained that Kik’s abortion to annals with the SEC:
Peikin additionally said that “companies do not face a bifold best amid addition and acquiescence with the federal balance laws.”
Kik Raised Funds to Save a Sinking Ship
According to the agency, Kik attempted re-invent its business archetypal afterwards accident money for years on its messaging appliance and the SEC took affair with the actuality that afresh traded Kin tokens traded for about 50% of the amount investors paid during the ICO. The SEC additionally alleges that Kik admiral believed the aggregation would go out of business unless an ICO was held.
Previously the Ontario Balance Commission had additionally abreast Kik that its Kin badge could be classified as a security. To date, the SEC’s clothing adjoin Kik is the better back the ICO bang and the action should appear as no abruptness to Kik as the SEC has absolutely declared that it will accompany unregistered balance sales captivated in 2024.
In May, Kik CEO Ted Livingston complained that Kik had spent $5 actor ambidextrous with the SEC and would booty the regulator to cloister if the balance babysitter persisted in advancing law administration adjoin the company. Those absorbed in the nitty abrasive apropos the clothing can apprehend the aboriginal filing here.
This is a developing adventure which will be adapted as new advice becomes available.
Do you anticipate the SEC will force the ICO to acquittance $100 million? Share your thoughts in the comments below!
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