The Securities and Exchange Commission announced a lawsuit of $ 100 million against Kik Interactive, the creators of the popular Kik messaging application, – as reported by CNBC.
Charge of Kik Interactive
The lawsuit focuses on Kin TokenToken
– is an accounting unit that is used to represent a digital balance in an asset.Details, launched in 2017, which is intended for sale within the application, and was announced by the state security service.
This is one of the most notorious examples of how the SEC is cracking down on ICOs, which it sees as security proposals. In 2017, Kik launched the Kin token at the height of market excitement.
Interesting in the section: ICO and its main characteristics
It was then sold to retail investors and intended to be exchanged through the popular Kik app. However, by not registering this asset with the SEC, Kik violated securities laws, which are designed to protect investors.
The article cites Steven Paikin from the SEC executive department: "Companies do not face a double choice between innovation and compliance with federal securities laws."
The Securities and Exchange Commission filed a lawsuit against Kik Interactive in the amount of $ 100 million. This is the first official announcement from the SEC, but this legal battle has been under preparation for several months, and quite recently Kik launched a project to protect against a lawsuit called "Protect cryptocurrency".
Editor: Yulia Krasnaya