Crypto Lawyer thinks Kik needs $10-$20 million to take on SEC

11 Jun, 2019
by David Borman
Update
Crypto Lawyer thinks Kik needs $10-$20 million to take on SEC

It is being reported by AMB Crypto that Stephen Palley, a lawyer with crypto expertise, recently spoke to CNBC’s CryptoTrader Ran NeuNer on the topic of the upcoming lawsuit that the SEC has filed against Kik for their Kin ICO. Palley feels the recently raised $5 million in the "Defend Crypto" campaign is not nearly enough, and that the company needs more like $10-$20 million.

As Chepicap has reported, the SEC recently announced a lawsuit against Kik due to what it has labelled an "unregistered token offering," referring to the Kin Token launch in 2017. Palley specifically mentioned how it is historic as this is the first time the SEC is enforcing the rules concerning the mass ICO craze of 2017. He notes:

"This is the first instance of the SEC actually going to a Federal Court and suing a token issuer for violating the registration provisions of the Securities Act of 1933."

He elaborates that it is wise of the SEC to focus the case on "unregistered securities" and not "securities fraud," however he does not feel the case is unwinnable for Kik. He does however, feel that the already raised $5 million will need to be just the beginning:

"I don’t think that $5 million is enough… Defense lawyers for this sort of case can cause $1000 an hour sometimes more, depends on depositions, whether it goes to trial, how the appeal cost… it can easily cost $10 to $20 million. I don’t think $5 million will be enough if they intend to take this all the way through."

Kik has so far made it clear that they have every intention of fighting this case to the end.

Will Kik be victorious? Will this be the beginning of a series of lawsuits centered around the 2017 ICO rush? Stick with Chepicap for all updates!

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Read more about: Kin (KIN) SEC

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