05
Jun
2019

Kik’s troubles mount as SEC files suit claiming securities law violation, lawyers say

The Block

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The U.S. Securities and Exchange Commission has filed suit against Kik, claiming it violated securities law with its initial coin offering (ICO). Experts tell The Block that the SEC has a solid case, but Kik is preparing its own argument in response, questioning whether its token sale actually falls under the agency's jurisdiction. 

The U.S. Securities and Exchange Commission has filed suit against Kik, claiming it violated securities law with its initial coin offering (ICO). Experts tell The Block that the SEC has a solid case, but Kik is preparing its own argument in response, questioning whether its token sale actually falls under the agency's jurisdiction. 

Kik can provide additional evidence that adds more color to the lawsuit from its perspective. However, the documents that the SEC presents in the complaint already unfolds a clear enough picture of Kik's unregistered token sales that it may be difficult to argue against these facts, according to Stephen Palley, an attorney at Anderson Kill and contributor to The Block, and Drew Hinkes, an attorney for Carlton Fields and general counsel for Athena Blockchain. “The legal piece of it is actually pretty simple, as long as the SEC shows that under the Howey Test, these tokens were securities, the SEC wins,” said Palley.

Read more: Kik’s troubles mount as SEC files suit claiming securities law violation, lawyers say

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- Blockchain and Virtual Currency Attorney | Anderson Kill P.C.
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Washington, DC

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