The U.S. Securities and Exchange Commission claimed a high profile scalp on September 23, when messaging service Kik announced it would shut down, laying off more than 100 employees.
Kik Interactive responded angrily yesterday to a lawsuit by the U.S. Securities and Exchange Commission alleging its $100 million initial coin offering of the Kin cryptocurrency was illegal. The case is the SEC’s highest-profile action to date claiming that an ICO violated the law by selling an unregistered security to the public.
Kin Ecosystem is alive and well, according to its general manager, Alex Frenkel. That’s despite the Securities and Exchange Commission lawsuit against Kik Interactive, the company which created Kin. The SEC claims the Canada-based messaging app sold unregistered securities to U.S. investors during its 2017 ICO. The complaint stopped short of alleging that the Kin token—which is governed by Kin Ecosystem—is a security.
In one of its highest profile enforcement actions to date, the Securities and Exchange Commission sued Kik Interactive today, claiming it illegally raised $100 million through an initial coin offering in 2017 without registering as a security.