(2019)
SEC v. Kik Interactive
Year
2019
Criminal or Civil
Civil
Year Resolved
2020
Jurisdiction (Court/State)
U.S. District Court (District not specified, but case handled federally)
Filed By
Securities and Exchange Commission (SEC)
Penalty/Fine (USD)
$5 million penalty (finalized in 2020)
Lawsuit Overview
The SEC sued Kik Interactive Inc. for conducting an unregistered $100 million initial coin offering (ICO) through the sale of Kin tokens. Kik marketed the tokens as investment opportunities without registering the offering, violating U.S. securities laws. The company was facing financial trouble and used the ICO to pivot its business, despite lacking any real infrastructure for Kin at the time of the sale.
Category
Unregistered Securities Offering / ICO Fraud
Notable Individuals Involved
Steven Peikin (SEC Enforcement Co-Director)
Robert A. Cohen (Chief, SEC Cyber Unit)
Kik Executive Team (unnamed in the suit)
Investor Loss Estimate
Over $55 million raised from U.S. investors; Kin tokens reportedly lost half their value post-sale.
Final Outcome
Kik settled with the SEC in October 2020, agreeing to pay a $5 million penalty and to notify the SEC before engaging in any future digital asset sales.
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