US judge Alvin Hellerstein ruled on the side of the US Securities and Exchange Commission in favor of the agency’s recommendation for a summary judgment in a case against the messaging app Kik in the USA. $ 100 million ICO sale.

opinion30 of Hellerstein noted that “the US Securities and Exchange Commission has filed a lawsuit against Kik Interactive Inc. alleging that the sale of unregistered Kin tokens is in violation of Section 5 of the Securities Act.

As described herein, I believe it is undeniable that Kik has offered and sold unregistered or exempt securities in violation of Section 5. As a result, the SEC’s motion for a summary judgment was approved and Kik’s proposal for a summary judgment was denied. “

As previously reported, both sides presented their arguments to the court in an online hearing at the beginning of July in order to take their respective steps towards a brief judgment. The SEC first filed a lawsuit against Kik in July 2019, alleging that Kik had “sold unregistered security tokens to US investors as required by US securities laws.” In response, Kik vowed to fight the SEC lawsuit.

According to the Hellerstein ruling, the next steps envisage that the two parties “jointly submit a proposal for an injunction and an injunction” by October 20th.

“If they cannot agree on a proposed decision, they should document their differences in a single document, supported by separate comments in a letter that will be published,” he wrote by October 20, 2020.

Kik CEO Ted Livingston said in a statement:

“We are very disappointed with this judgment. We are reviewing all of our options, including filing a complaint. To be clear, Kik has always supported the Commission’s goal of protecting investors, and we take it seriously. In preparing the Kin sale, Kik reached out to good advisors (both in the US and internationally) to analyze the law and we believe our ICO was to sell a utility token rather than a utility token “.

“While this is a step backwards for Kik, the decision does not affect Kin and the growing ecosystem of developers that are making Kin the most widely used cryptocurrency for mainstream consumers,” he added.

Kin token has been delisted on most major exchanges since the day it was sued by the SEC, this token has lost liquidity and lost 95% of its value from the ICO price. Classified as junk token.

In fact, not a single ICO project could survive the SEC’s whistleblowing, all having to pay fines, return investor funds, and sell tokens for self-destruction. Telegram is a good example of this.

Thach Sanh

According to AZCoin News

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