Kik Interactive has fallen again on the Securities and Alternate Fee lawsuit claiming a $ 100 million token sale was unlawful. The corporate that owns Kik Messenger, submitted a comment of 130 pages today within the US District Courtroom for the Southern District of New York, claiming that the SEC twists the details about his token, referred to as Kin, & # 39; and requires an early trial date and rejection of the grievance.
One of many key points within the case is whether or not Kin was simply an in-app token that was used to buy video games, digital merchandise, and different companies in Kik Messenger, or whether or not it was an funding alternative, because the SEC claims.
Kik & # 39; s normal advisor Eileen Lyon said in a press statement that “since Kin itself just isn’t a safety, the SEC should reveal that it has been bought in a way that’s opposite to securities legal guidelines. The SEC had entry to greater than 50,000 paperwork and witnessed practically 20 witnesses previous to submitting her grievance, however is unable to say that Kik's token sale violated securities legal guidelines with out bending the details to to falsify document. "
The SEC claims that the token sale, introduced in 2017, passed off at a time when the corporate predicted that it could run out of cash after Kik Messenger had misplaced cash for years, after which used the proceeds from that sale to create a web-based market for the app.
Within the file, Kik's authorized group denied that allegation, claiming that the SEC's allegations about his monetary state of affairs "had been designed solely for deception, placing Kik at a drawback and placing it in a damaging gentle" and that Kik started working discover a cryptocurrency based mostly mannequin after income era choices that would compete with bigger expertise firms.
They added: “Each Kik & # 39; s Board and the Govt Staff believed that Kin was a daring concept that the challenges to producing income that every one builders (not simply Kik) face within the present advertising-based financial system, was capable of resolve by altering the way in which individuals purchase and promote digital services and products. "
The SEC additionally claims that the sale of digital tokens to US traders was unlawful as a result of Kik didn’t register their provide as required by US regulation, though it claims that Kik marketed Kin as an funding alternative whose worth would enhance. In her response, Kik denied that it supplied or bought securities or violated federal securities legal guidelines.
Within the firm's press assertion, Kik CEO Ted Livingston mentioned: “The SEC is attempting to painting that the Kin undertaking was an act of despair moderately than the daring transfer to win the sport, and one which Kakao, Line, Telegram and Fb have now all been adopted. "