The SEC is suing Kik for selling unregistered securities. In 2017 the Canada-based social network sold 1 trillion of these tokens, called Kin, raising $55 million from U.S. investors, according to an SEC statement released today, with an additional three trillion tokens planned to be sold in secondary markets. This is an important aspect of the lawsuit, as more than a year after the token offering concluded, the SEC released much anticipated guidance on what it considers necessary requirements for a compliant ICO. The SEC is seeking a permanent injunction against Kik as well as disgorgement plus interest of the amount raised, and an unspecified penalty. While this is the first official word from the SEC that the lawsuit was happening, Kik likely already knew it was in the works.

Source: Forbes June 04, 2019 19:39 UTC