Kik Hits Back at the SEC with its 130-Page Response, Claims Allegations are “Solely Designed For Misdirection”

  • Kin Token Sale wasn’t a Hail Mary
  • The Case Takes a Toll on Kin’s Price

Kik fights back the Securities and Exchange Commission (SEC) lawsuits that climb $100 million token sales was illegal.

In a 130-page filing released in US District Court for the Southern District of New York, the company which owns Kik Messenger app said the SEC is “twisting” the facts about its tokens called Kin, asking for an early trial date and dismissal of the complaint.

The SEC’s complaint alleges that the Toronto-based company offered unregistered securities to keep the messaging platform going.

However, Kik maintains that its public offering wasn’t a security sale and SEC’s allegations about its financial conditions

“is solely designed for misdirection, thereby prejudicing Kik and portraying it in a negative light.”

Kin Token Sale wasn’t a Hail Mary

Kin also emphasized that it did not sell Kin in a single sale, rather involved two — a pre-sale of contractual rights, pursuant to SAFTs and the second sale was to the public.

The company also pushed back against the idea that its tokens sale as a last-ditch effort to generate revenue.

A broad member said,

“I think this is a great idea. People call it a hail Mary but to me that is a longshot and I really do not think it is a long shot.”

Kik did acknowledge that in 2016 it hired an investment bank to evaluate the sale of the company but then chose to go all-in on a business model centered around a cryptocurrency instead of seeking another round of venture capital funding, however, they were not facing an imminent financial “crisis.”

“While Mr. Livingston had personally been investigating the potential for cryptocurrency-based business model since 2011, Kik had been working toward an in-app currency since it launched Kik Points in 2014.”

The Case Takes a Toll on Kin’s Price

In its affirmative defenses, Kik says it did not violate Section 5 of the Securities Act because its offer and sale of Kin in 2017 and if the phrase “investment contract” applies to Kik, it is

“unconstitutionally vague.”

It further stated how by the time Kin was announced, no regulator had ever deemed the offer or sale of any cryptocurrency— bitcoin or ethereum, to be an

“investment contract.”

This has certainly taken a toll on Kin’s price that tumbled down, $0.000036 the day the lawsuit was filed to $0.000016, at press time.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide