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SEC Sues Kik Over $100 Million ICO, Sees Kin as a Security (2)

June 4, 2019, 5:49 PMUpdated: June 4, 2019, 6:19 PM

The Securities and Exchange Commission sued Kik Interactive Inc. 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.

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 June 4 court filing. The agency is seeking unspecified monetary penalties.

“Companies do not face a binary choice between innovation and compliance with the federal ...