On Wednesday, the U.S. Securities and Change Fee introduced the top of its lawsuit in opposition to Kik Interactive.
The Canadian messenger app fell afoul of the U.S. regulator for failing to deal with its sale of KIN tokens as a securities providing. A district choose confirmed the SEC’s view on the finish of September, however solely right this moment did the court docket see the ultimate judgment.
Because of right this moment’s judgment, Kik might want to pay the SEC $5 million in penalties and maintain the fee posted as to any capital raises for the following three years. On condition that Kik was a agency in monetary dire straits earlier than its preliminary coin providing (ICO) for KIN, it is an open query as as to if it should survive.
Alongside the SEC’s victory over Telegram in an identical ruling, many commentators have seen current court docket choices as placing an finish to finish to Easy Settlement for Future Token contracts that have been the authorized framework for various the most important ICOs of current years.
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