The US Securities and Exchange Commission (SEC) is suing messaging app Kik over its 2017 initial coin offering that raised $100 million. Bloomberg reports that the SEC believes that the tokens issued in the sale, called Kin, count as a security, and, as a result, the sale should have been registered with the government agency. If it wins, the SEC could force Kik to offer its investors their money back.
At one time, Kik was a major messaging app in the US, and it was especially popular with children and teenagers. Unfortunately, this popularity contributed to it becoming “the defacto app” for child predators, according to a report released in 2017. As it lost users and its revenue declined toward the end of the year, the SEC alleges that…
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