The US SEC demands to KIK messaging app for its 2017 ICO
By Diariobitcoin @diariobitcoinAccording to the Securities Commission, Kik had lost money with his application and tried to be acquired by a large company, but failed.
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The VISORS AND CHANGE OF US (SEC) is demanding the messaging application KIK for allegedly making a sale of unregistered values when it launched a Initial supply of cryptocurrencies (ICO) For your token Kin In 2017.
In a presentation presented today in the South District of New York, the Sec He said that KIK He violated section 5 of the 1933 Securities Law, which requires offers.
“By selling USD $ 100 million in values without registering offers or sales, we claim that Kik deprived the information investors to which they were legally entitled and prevented investors from making informed investment decisions ”said Steven Peikin, co -director of the Division of Compliance with the SEC. “Companies do not face a binary option between innovation and compliance with federal values of values.”
As alleged in the complaint of the SEC, kik He had lost money for years in his only product, an online messaging application, and the company’s management predicted internally that he would run out of money in 2017. The losses of KIK averaged USD $ 30 million a year, according to the SEC, and the previous attempts of KIK If they were acquired by a larger technology company they had failed, with seven potential companies that declined to buy or fuse with the company.
More in its history
In early 2017, KIK He sought to change a new type of business, which he financed by selling a billion digital chips. The company sold its family chips to the public, and a discount price for wealthy buyers, raising more than USD $ 55 million from US investors. The Denunciation of the SAGAs that the kinship tokens were recently negotiated in approximately half of the value that public investors paid in the offer.
According to the document of the Secthe Ontario Securities Commission previously told KIKfrom Waterloo, based in Canada, that his token Kin It seemed to be security.
Earl this year, the company told the Wall Street Journal that planned to take the Sec to the courts if the agency initiated a legal action against the project.
Last month, the CEO of Kik, Ted Livingston said the company had already spent $ 5 million in collaborating with the Sec. Then, KIK launched a collective financing campaign “Defend Crypto”Of USD $ 5 million to support a potential demand.
Kin It is used in a set of mobile applications. KIK He has been using its ICO funds to support the development of new markets so that people can win and spend the cryptocurrency, which is executed in its own block chain.
In a statement today, Livingston said:
This is the first time that we are finally on the way to obtain the clarity that we need as desperately as an industry to continue innovating and building things.
The price of Kin He sank into the news of the SEC’s demand, falling more than 25 percent in the two hours after the claim announcement.
Fountain: COINDESK
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