KIK and SEC propose USD $ 5 million agreement to end one year’s legal battle

The legal battle of a year is to end through a fine, with Kik Interactive and the Sec proposing an agreement of USD $ 5 million to closed the case on the “fictitious” ICO of USD $ 100 million in 2017

***

Less than a month after a critical judicial decision in their current legal struggle, and With a fine of USD $ 5 million, Kik Interactive and the US stock commission and values (Sec) have proposed to settle the aforementioned dispute On a sale of Token through initial offers of currencies (Ico) made in 2017. The two parties had until Tuesday to present their proposal.

This was reported by the media COINDESKsubsequently cited by other means such as The Block and Decrypt. The proposed joint agreement still needs the approval of the President of the Federal Court of District Alvin K. Hellerstein, according to public judicial documents.

The Court document says:

“The parties have reached an agreement on a sentence proposal, and present a consent executed by Kik Interactive Inc. (Annex A) and a final sentence proposal (Annex B). The proposed final ruling, if approved by the Court, would permanently prohibit KIK Behavior -based mandate, as established in the final sentence proposed, under the 21 (d) (5) of the Values ​​Law of 1934, 15 USC § 78u (D) (5);

KIK and Sec one year’s legal battle ends

As will be remembered, KIKthe platform founded by Canadian businessman Ted Livingston in 2010, raised USD $ 98 million in a Ico At the end of 2017 to support its cryptocurrency Kin and the associated ecosystem.

Later, the Sec He indicated that the sale could have violated the US values, and that the personnel of the Sec I would recommend initiating an action of application of the law against the company. In a presentation of June 4, 2019 in the South District of New York, the Sec began the action and said that KIK He violated section 5 of the 1933 Securities Law, which requires offers.

Subsequently, in September 2019, KIK He announced that he would close its doors after the dispute. The news confirmed the rumors that arose after the dismissal of 70 employees by the subsidiary company with the same name as its cryptocurrency, Kin.

However, in October 2019, an announcement of the company gave hope to its followers: KIK He said he stayed. The company also revealed that it planned to reduce the number of employees from more than 100 people to a team of only 19 people.

Tied to the law

KIK You must notify the Sec 45 days in advance any transaction related to your tokens treasury Kin Under the proposal. The notification order expires three years after the sentence enters into force. The agreement would tie a legal combat that only 20 days ago seemed a resounding loss to KIK.

The general counselor of KIKEileen Lyon said the Sec I should create clear rules for the crypto industry, instead of publishing “Conflictive statements” and other non -binding orientation forms in September.

According to Decryptit is unusual when the Sec reaches an agreement with cryptographic companies on issues related to Icoalthough it is not something unprecedented:

• BlockoneUSD $ 4 billion raised in a Ico for your block chain network.
• EOS only had to pay USD $ 24 million to the Sec When he reached his agreement last October.
• Telegram He had to pay USD $ 18.5 million for his Ico of USD $ 1.7 billion when he reached an agreement in June of this year, although he had to return the money he raised in his Ico To investors.

Recommended readings

Sources: COINDESKThe BlockDecrypt, file of Diariobitcoin.

Arnaldo Ochoa/ Diariobitcoin.

KIK web image

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

Subscribe to our newsletter