• Kik Interactive violated U.S. securities laws with its token sale.
  • The company announced that it is setting aside $5 million to fight the SEC.

The U.S. Securities and Exchange Commission (SEC) announced that it is suing Canadian company Kik Interactive for conducting an illegal $100 million securities offering of its digital tokens Kin Coin. SEC reported that the company violated the U.S. securities laws by selling its Kin tokens to U.S. investors without registering.

Kik Interactive was developing an anonymity-focused online messaging app which concluded in November 2017. The product was at the core of the company’s ICO. The company documents revealed that it was running short on funds. 

In early 2017, the company raised approximately $100 million after launching its ICO to institutional and retail investors out of which $55 million were from U.S. citizens. Kik Interactive’s Kin Foundation announced in May that it is allocating $5 million to settle the dispute.

SEC also reported that the Kin tokens were marketed as “an investment opportunity” by Kin Interactive. The firm claimed that its tokens would be incorporated in its messaging app. However, the U.S. regulator stated that the company neither issued any services as such nor delivered any products that could be purchased using the Kin token. 

“By selling $100 million in securities without registering the offers or sales, we allege that Kik deprived investors of information to which they were legally entitled, and prevented investors from making informed investment decisions,” said Steven Peikin, Co-Director of the SEC’s Division of Enforcement.

Though Kin Coin reached as high as almost $1 billion in January 2018 after the total market cap, yet the current total value of the coins in circulation is just below $25 million.

“Kik told investors they could expect profits from its effort to create a digital ecosystem,” said Robert A. Cohen, Chief of the Enforcement Division’s Cyber Unit.

The SEC seeks a permanent injunction, disgorgement plus interest, and a penalty on the company.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin price update: BTC/USD struggling with descending trendline resistance for 3 straight months

Bitcoin price is back above $10,000 after a brief visit to $9,600 on Thursday. The failed attempt to sustain gains above $10,400 last week had demoralized the bulls. For a few days, Bitcoin buyers had just enough energy to defend $10,000 while hoping for a breakthrough to the upside. 

More Bitcoin News

Ethereum (ETH) price analysis: ETH/USD bulls knock at $200.00

The second largest cryptocurrency with the current market capitalization of $23.4 billion hit $224.40 during early Asian hours. The coin has retreated to $218.50 by the time of writing amid strongly bearish short-term sentiments. 

More Ethereum News

IOTA Foundation develops atonomous and decentralized marketplace

IOTA is working on the world's first industry marketplace. IOT/USD stays range-bound, vulnerable to the further downside correction.

More IOTA News

Ripple's XRP technical analysis: XRP/USD big retest on the cards

Ripple's XRP price on Friday is trading firmly in the red by some 3% in the session. XRP/USD bears are forcing the price to give back the strong gains seen earlier in the week.

More Ripple News


Bitcoin Weekly Forecast: Rangebound trading and September blues come upon the crypto market

Bitcoin finishes the week with marginal losses. The first digital currency recovered from the recent low of $9,886 but stayed in the red zone as of the end of the week.

Read the weekly forecast