In the latest update on the ongoing standoff between the US Securities and Exchange Commission (SEC) and Kik. The US SEC claims that the defense for 2017 KIK ICO of $ 100 million was unsustainable and should be rejected.
30 October, 2019, | AtoZ Markets – In June, the SEC sued Kik Interactive, the company behind the Kik chat platform, for leading an illegal $ 100 million digital tokens bid in 2017. It alleged that Kin’s offer related to securities transactions and that the company was required to comply with the registration requirements of US securities laws.
Later in August, Kik responded by saying that the commission had used a strategy to twist the facts, creating a very selective and misleading representation of the file. It argued that since it had not sold an investment contract or any other security listed in the sale, it had not registered with the SEC.
Kik’s CEO: “SEC is playing dirty”
“As applied to Kin’s bid and sale by Kik in 2017, the definition of investment contract (as requested by the commission) is desperately vague and leaves the commission-free to engage in an arbitrary and discriminatory application in this space.”
Kik’s CEO, Ted Livingston, accuses the SEC of playing dirty. According to him, the SEC is trying to make it look bad. In its latest filing, the SEC rejected Kik’s arguments by saying:
“This defense asserts that it is despite more than 70 years of well-established jurisprudence. The term investment contract in securities laws is void for vagueness as applied to Kik’s investment system. Allegation is untenable. And authority should reject it.
Kik has mostly based its case on a void for vagueness affirmative defense. Yet, trying to push SEC officials to prove that the SEC was not able to give regulatory clarity on token sales in 2017.”
However, the SEC argued that Kik could not use an unfounded affirmative defense as a justification for the irrelevant and burdensome discovery. And added that Kik’s response raises no material issue of fact. And the Court should grant the SEC’s judgment on the pleadings as to Kik’s first defense.
Kik delivers messaging application
Meanwhile, Kik recently revealed that its messaging application had inked a letter of intent with another company. They want to buy the app, continue to develop it for their millions of users. Furthermore, they take the Kin integration to the next level.
Earlier in May, the company launched Defend Crypto, a new campaign to fund its legal battle with the SEC. At the time, it was setting aside $ 5 million with Coinbase for the initiative. That also got support from ShapeShift, Arrington XRP Capital, and others. Kik then handed Defend Crypto to the Blockchain Association.
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