The SEC Is Suing Kik for Its 2017 ICO
The U.S. Securities and Exchange Commission (SEC) is suing Kik for allegedly running an unregistered securities sale when it launched an initial coin offering (ICO) for its kin token in 2017.
The company sold its kin tokens to the public, and at a discounted price to wealthy purchasers, raising more than $55 million from U.S. investors. The SEC complaint alleges that kin tokens traded recently at about half of the value that public investors paid in the offering.
According to the complaint, the Ontario Securities Commission previously told the Waterloo, Canada-based Kik that kin appeared to be a security.
Last month, Kik CEO Ted Livingston said the company had already spent $5 million engaging with the SEC. Kik then launched a $5 million "Defend Crypto" crowdfunding campaign to support a potential lawsuit.