SEC Sues Kik Over $100 Million ICO, Sees Kin as a SecurityMore
(Bloomberg) — The U.S. Securities and Exchange Commission sued Kik Interactive Inc. for illegally raising $100 million through a 2017 digital-token sale, in one of its highest profile cases targeting a company for not registering an offering with the regulator.
After losing money for years on its sole product, an online-messaging application, Kik raised more than $55 million from U.S. investors by selling a digital token called Kin without the proper disclosures, the SEC said in a Tuesday court filing. The agency is seeking unspecified monetary penalties.
“Companies do not face a binary choice between innovation and compliance with the federal securities laws,” said Steven Peikin, co-head of the SEC’s enforcement division.
Kik was among the