SEC Charges Kik for conducting a $100 Million unregistered ICO
|- The SEC has charged a Kik for a $100 million ICO which was not registered with the U.S. securities laws.
- Kik financed its new type of business back in early 2017 via the sale of one trillion digital tokens.
U.S. regulator, the Securities and Exchange Commission has taken action and sued Kik Interactive Inc. for conducting an illegal $100 million securities offering of digital tokens.
The SEC has charged Kik for selling the tokens to U.S. investors without registering their offer and sale as required by the U.S. securities laws.
Within the SEC’s complaint, Kik had lost money for years on its sole product, an online messaging application. The management of Kik had forecasted that it was going to run out of funds in 2017. Kik had sought to pivot a new type of business early in 2017. It was financed via the sale of one trillion digital tokens. Kik sold its “Kin” tokens to the public, and at a discounted price to wealthy purchasers, raising more than $55 million from U.S. investors. The complaint alleges that Kin tokens traded recently at about half of the value that public investors paid in the offering.
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