Kik vs SEC Part 2, The SEC Fires Backs
Last week I wrote about Kik and its potential battle with the SEC.
Kik is adamant that its cryptocurrency, KIN, is not a security.
And in anticipation of a battle with the SEC it launched Defend Crypto, a crowdfund for its defense.
Careful what you wish for… because the SEC fired back today.
Today the SEC sued Kik over its $100 million ICO in 2017.
The SEC is asking a federal NY court to force Kik to refund the ICO and pay interest and penalites.
According to the SEC:
The ICO was a “Hail Mary” effort by Kik to raise funds so it wouldn’t run out of money.
Before the token sale Kik had consulted with the Ontario Securities Commission, who said Kik likely needed to comply with securities laws.
Kik’s claim that KIN was a utility token was disingenuous.
According to Kik CEO Ted Livingston, “This is not about KIN; this is about crypto broadly.”
Well, at the very least we’re getting some action from the SEC.
or Abra
and trade cryptos on Binance and Bibox...
And delegate SP with MinnowBooster
The Sec does need to wake up and treat crypto in a fair way.
Tbh they’re treating it like they treat any other company/investment. I don’t agree with their policies but I don’t think this is unfair exactly
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My point is more on the sense that the Sec and other regulatory authorities have yet to make a focused effort to regulate crypto in a constructive way lets say.
As we can see with taxes that are simply ridiculous and completely ilogic.
In terms of the Sec and Kik I do not have enough knowledge to understand exactly the implications but it is obvious that ico's and crypto in general are still in a middle ground where nobody knows what to do with it :)
Very true
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