October 21, 2020

Cryptocurrency issuer Kik Interactive Inc. will pay a $5 million penalty in a consent judgment resolving claims by the SEC that Kik’s unregistered offering of digital “Kin” tokens in 2017 violated U.S. securities laws.  The consent judgment finds that Kin tokens were investment contracts and the offering did not qualify for any exemption from registration requirements.  Kik sold the tokens through both public and private sales; the court found that the sales were a single integrated offering.   SEC

Tagged in: Cryptocurrency, Financial and Investment Fraud, Regulatory Violations, Securities Fraud,