SEC Beats Kik In Landmark Suit Over $100M Crypto Sale
Law360 (September 30, 2020, 9:41 PM EDT) -- A New York federal judge ruled Wednesday that Kik Interactive Inc.'s 2017 sale of $100 million worth of its own cryptocurrency violated securities laws, granting the top U.S. securities regulator summary judgment on its closely watched enforcement action against the Canadian messaging company.
Acknowledging, as he has before, that he had no "direct precedent" to work from, U.S. District Judge Alvin K. Hellerstein sided with the U.S. Securities and Exchange Commission in finding that Kik's digital asset Kin fit the definition of a "security" under the so-called Howey test, because proceeds of the Kin offering were used to fund Kik's operations and...
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