Canadian messaging app Kik has sensationally fired back at the Securities and Exchange Commission (SEC) for “twisting facts” in the regulator’s attempt to sue the company over its 2017 Initial Coin Offering (ICO).
Originally, the SEC claimed that the 2017 ICO was illegal as Kik did not hold a license for selling what it deemed to be a security.
Kik sold one trillion KIN tokens during the ICO, raising a grand total of $100 million during the height of the ICO mania.
However, Kik’s lawyers have now issued a 130-page response to the SEC claiming the company’s innocence, stating that the SEC’s trial was a “publicity stunt”.
“The Commission’s Complaint reflects a consistent effort to twist the facts by removing quotes from their context and misrepresenting the documents and testimony that the Commission gathered in its investigation,” Kik’s lawyers stated in their response.
"Despite the distractions caused by the SEC's Complaint, we are gratified that the Kin ecosystem continues to grow and thrive, and that Kin is touching millions of people across more than 60 applications" @ted_livingston – Read the full press release https://t.co/gdgO2cknV1
— Kin Foundation (@kin_foundation) August 7, 2019
The document continues: “These tactics may have gotten the Commission a decent news cycle, but they will not withstand meaningful scrutiny at summary judgment or trial.”
The value of KIN tokens has dropped significantly since the ICO, with more than 90% of the value being wiped off the market cap. The token is now worth only $0.000015, down from its all-time high of $0.001306.
It will be interesting to see how the SEC responds to Kik’s ambitious counter-claims. The regulator has been clamping down on a number of cryptocurrencies over the past year, with the likes of Paragon and Airfox being forced to refund investors and re-register as securities.
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