SEC announces it is suing Kik Interactive for $100 million

04 Jun, 2019
by David Borman
Breaking News
SEC announces it is suing Kik Interactive for $100 million

It has just been reported by CNBC that the Securities and Exchange Commission has announced a $100 million lawsuit against the company Kik Interactive, creators of the popular Kik messaging app. The lawsuit is centered on the Kin Token, launched in 2017, which is meant to be traded inside of the app, and has been declared a security by the government agency.

This comes as one of the most high-profile examples of the SEC cracking down on ICOs that it has deemed as security offerings. In 2017, Kik launched the Kin token around the height of the market excitement taking over at the time. The token was largely sold to retail investors and is meant to be a medium of exchange through the popular Kik app. However, by not registering this asset with the SEC, it seems that Kik has broken securities laws that are meant to protect investors.

Steven Peikin, from the SEC’s Division of Enforcement, is quoted in the article:

"Companies do not face a binary choice between innovation and compliance with the federal securities laws."

Though this is the first official announcement from the SEC, this legal battle has been gearing up for months, and just recently Kik launched a campaign to defend themselves against this clearly anticipated lawsuit, titled "Defend Crypto."

Kik CEO Ted Livingston came out to say that he felt this would ultimately help the US on its path to having clear regulations as pertain to cryptocurrencies and tokens:

"This is the first time that we’re finally on a path to getting the clarity we so desperately need as an industry to be able to continue to innovate and build."

It isn't clear at this time how this case may shape the future of the space, but it is gearing up to be groundbreaking and may ultimately be part of what brings blockchain regulations to the US. As always, stick with Chepicap for all updates!

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