U.S. SEC Sues Messaging App Kik for $100mn Initial Coin Offering

The U.S. Securities and Exchange Commission has filed a lawsuit against Canadian messaging app Kik over their $100mn initial coin offering or ICO; the SEC is not suing the app for fraud but rather for not registering the offering which they say deprived investors of information related to the offering; “This is the first time that we’re finally on a path to getting the clarity we so desperately need as an industry to be able to continue to innovate and build,” Kik chief executive Ted Livingston said in a statement according to the FT; ICOs have been a controversial topic in recent years with billions being raised for many projects that ended up being no more than a white paper and product idea; providing more clarity on the space should help the market and ultimately reduce the number of bad or fraudulent raisings. Source.

  • Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

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