SEC sues messaging app Kik for not registering its ICO

posted 4 months ago
The US Securities and Exchange Commission sued messenger app maker Kik for its $100 million ICO – which the agency contends was an unregistered securities sale. In a complaint filed Tuesday, the SEC alleged that Kik violated federal securities law by not registering its kin token sale. The complaint discussed how “the Kik corporation was declining and its messaging app was losing revenue and losing users,” but the company suddenly launched a cryptocurrency.

The Kik action is significant because it represents the SEC’s first enforcement action for a pure regulatory violation – that is, a case where a token issuer simply failed to register with the SEC based on its good faith interpretation of the law.
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