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SEC Sues Kik For Allegedly Conducting An Unregistered $100 Million ICO In 2017

The chief of the Enforcement Division’s Cyber Unit, Robert A. Cohen elaborated that  Kik’s offering should be considered a securities offering as Kik claimed to the investors that they can except profits from its efforts to build a digital ecosystem:

“Future profits based on the efforts of others is a hallmark of a securities offering that must comply with the federal securities laws.”

Interestingly, the SEC’s complaint follows Kik’ announcement of launching a $5 million crypto initiative to fund a lawsuit against the SEC. Ted Livingston, the CEO of Kik revealed details about the fund dubbed as DefendCrypto on May 28.

Benjamin Sauter, a lawyer at Kobre & Kim, showed his support for Kik, stating that with the action against the SEC, Kik is providing credible arguments, pushing the regulator to “legitimate risk if it decides to follow through with an enforcement action.”

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