The SEC said in a motion for summary judgment that Kik did not offer a “cognizable defense” for the reason behind not registering its kin token sale.
The company had meant for its kin tokens to function as a portion of the token economy brought into its messaging app. It contended that it had not had an unregistered securities sale as of the beginning of 2018 when the SEC first acted.
The SEC contended that Kik sold tokens to investors with the idea that they would experience a return. In addition, the regulator disputed Kik’s contentions that half of its sale was just for accredited investors.
Kik contended in its summary judgment motion that it followed U.S. securities rules. It notes that it had a presale for accredited investors to bring in money for creating the ecosystem for kin as well as a second public sale to move tokens to users.
The company also reportedly said it filed a Form D in September 2017 for the pre-sale, which would exclude it from registering the offering with the SEC. In addition, the firm contended the second sale was not a securities offering as the company didn’t provide investors with contractual obligations or pledge returns on investment.
In other news, Tim Draper is eyeing the early digital currency space in India, Cointelegraph reported.
The billionaire investor said per Inc42, as cited by the Cointelegraph report, “I met several Bitcoin and crypto startups while I was in India last week. I hope to be able to fund a number of them.”
Beyond Draper, WazirX and Binance publicized their $50 million “Blockchain for India” fund earlier this month. Draper noted in a social media post that the recent reversal of the Reserve Bank of India prohibition on banks supplying digital currency firms with financial services would power a renaissance for the crypto industry in the nation.