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SEC Files a $100 Million Lawsuit On Kik for Having Unregistered Tokens

The SEC, abbreviation for the Securities and Exchange Commission is an independent agency of the US Federal Government. SEC basically holds the right to enforce federal securities law and handles the securities industry. It recently has cracked down Kik, a messaging application, for launching its own cryptocurrency. While an unassuming company launching cryptocurrency isn’t a bad thing but it certainly caught the eye of the SEC, so there must be something suspicious about it.

The Kik Coin

Kik is a messaging application that has been quite popular due to its main features. It allowed users to chat with random people and the concept was pretty unique for its time. But, due to the no censorship from the app, it was a breeding ground for the spread of pedophilia and sexual harassment. Due to this, it doesn’t have a good reputation among the messaging app space but still holds a user base due to its strong community.

Kik launched its own cryptocurrency called “Kin” that was to be traded within the app. Last year, it raised the whopping US $12 billion dollars through ICO. This was the most money made by an ICO of similar platforms as EOS raised $4.2 billion and Telegram raised a miniscule $1.7 billion in comparison.

SEC’s Hatred With Crypto And Kik

SEC has a long story of hatred with the Crypto World. From refusing sanctions to outright denying deals and contracts relating to cryptocurrencies, SEC sure has made its stance clear that it won’t have any interaction with the Crypto World. Well, this has also translated to filing a lawsuit against Kik for using unregistered tokens. Well, we could say that it can be actually Kik’s fault this time and not its community has to be blamed for it.

Kik’s founder Ted Livingston gave a statement to CNBC that he will fight the lawsuit filed against them. He believes that it will restrict the future of Crypto if this particular project is stopped. Whether it will affect Crypto is another thing, but will the case against SEC will go his way, is very doubtful.

About Parth Vig

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