SEC Sues Kik Over $100 Million ICO

The Securities and Exchange Commission sued Kik for illegally raising $100 million through a 2017 digital-token sale, in one of its highest profile cases targeting a company for not registering an offering with the regulator. From a report: After losing money for years on its sole product, an online-messaging application, Kik raised more than $55 million from U.S. investors by selling a digital token called Kin without the proper disclosures, the SEC said in a Tuesday court filing. The agency is seeking unspecified monetary penalties. 'Companies do not face a binary choice between innovation and compliance with the federal securities laws,' said Steven Peikin, co-head of the SEC's enforcement division. Kik was among the biggest initial coin offerings in the past two years and has prominent backers. Venture capitalist Fred Wilson defended the Kin digital currency in a blog post, saying it is not a security.

Read more of this story at Slashdot.