SEC lawsuit against Kik continues

The Securities and Exchange Commission (SEC) asked the court to expedite the case against Kik in ordersimplified production.

The SEC says it has sufficient evidence to charge the company with illegally selling securities under the guise of an ICO worth $100 million in September 2017.

According to the regulator, the proposal Kikwas built on the promise of returns for investors and growth in the price of an asset, which “deprived investors of protections and required disclosures under federal securities laws.” 

The agency insists that the sale of one trillion Kin tokens should have taken place only after registration and permission from the SEC, like the sale of an investment contract.  

In addition, according to the SEC, the company has unsuccessfullytried to insure the token for $10 million in case Kin was recognized as a security and problems with the law arose, which indicates that the company's management understood the illegality of their actions. 

The commission is seeking a permanent injunction against the Canadian company, in addition to fines and the recovery of "illegally obtained income."

Startup CEO Ted Livingston rejects all claims and accuses the agency of rigging the facts.