Canadian instant messaging company, Kik, has hit back at the US regulator trying to sue its ICO with a giant public document.
Kik Implies ICO Trial Was SEC Publicity Stunt
Following that news that the Securities and Exchange Commission (SEC) was taking Kik to court in June, the company has now released a response in which lawyers dissect its allegations on a sentence-by-sentence basis.
As Bitcoinist reported, the debacle focused on Kik’s 2017 initial coin offering (ICO), during which it sold one trillion KIN tokens in a bid to raise $100 million.
The SEC believed the sale was illegal in the US, as Kik did not have a license for selling what it deemed to be a security.
“…The Commission’s Complaint reflects a consistent effort to twist the facts by removing quotes from their context and misrepresenting the documents and testimony that the Commission gathered in its investigation,” Kik’s response reads.
The result is a Complaint that badly mischaracterizes the totality of the facts and circumstances leading up to Kik’s sale of Kin in 2017.
Concluding their introductory statements, Kik’s lawyers conspicuously did not mince their words.
“These tactics may have gotten the Commission a decent news cycle, but they will not withstand meaningful scrutiny at summary judgment or trial,” they wrote.
Kik’s situation is broadly reflective of the myriad of teething problems ICO operators experienced in the US market, especially during the phenomenon’s boom in 2017.
A lack of clear regulation – which still persists today – compounded difficulties, resulting in a sweeping investigative effort by the SEC and the Commodity Futures Trading Commission (CFTC) last year.
This situation, according to lawyer Katherine Wu,