The SEC tightens its grip around Kik Interactive

05.06.2019 / 01:11

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The US Securities Exchange Commission (SEC) has announced that it is suing a lawsuit against the Canadian company Kik Interactive. According to the indictment, the company conducted ICO's $ 100 million digital currency Kik Coin, with the ICO illegal. According to the US financial regulator, the company has sold its tokens to US investors without the required registration under US law.

The company has been developing a chat application focusing on anonymity. The product was the basis of the ICO initiative, which ended in 2017. That same year, leaked documentation from the company reveals that the company does not reach financial resources.

Following the launch of the ICO to institutional and retail investors in early 2017, the company managed to raise $ 100 million, with US $ 55 million being paid by US citizens alone. At the end of May, Kik Interactive announced that they have earmarked $ 5 million for SEC cases.

According to the SEC, the company has advertised Kin Trucks as an "investment opportunity". However, the company maintained that they would integrate the tokens into the chat application itself. According to the regulator, however, such a service and application did not exist, and the company did not manage to create any product to buy with the tokens.

SEC accuses Kik Interactive of depriving investors of important information that has prevented them from taking a rational investment decision.

The Commission will seek a permanent penalty for the company, including a fine, along with penalty interest. In previous such situations, the Commission has won cases against companies such as Munchee, Gladius Network, Paragon Coin and Carrier EQ.

Source: Finance Magnates

Trader Martin Nikolov

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The SEC tightens its grip around Kik Interactive

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