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The Canadian tech giant Kik fired multiple employees of its cryptocurrency division despite Bitcoin being in the bull market currently and despite the SEC fight as well. In the latest cryptocurrency news below, we take a closer look at why this is happening right now.

The move reportedly comes during the multi-month legal battle of Kik with the US Securities and Exchange Commission because of the digital asset that Kik sold via the initial coin offering. While the company was known to be the best and biggest social application, its dominance has waned over the recent years because many new platforms emerged such as Telegram, Snapchat, and Facebook Messenger. The Israeli media outlet Calcalist reported that Kik is now trying to work out dramatic measures to try and bring stability to the company. The anonymous sources cited that the flagship application of the company may also be shutting down in the near future.

The same sources pointed out that the crypto startup made more than 70 layoffs from its cryptocurrency division and the management of the company provided a select set of the employees to choose to either ‘’transfer to a new company that is based on the same technology’’ but many of the employees claimed they didn’t understand what this means exactly. While the Calcalist didn’t point out straight away, it seems like the 70 employees were the ones running the development and growth of Kin which means that the things might be going south for the blockchain. The communications manager of the Kin Foundation has confirmed the news. He stated that there is a restructuring process going on adding that the company states will be soon released.

Kik’s chief executive Ted Livingston confirmed the layoffs later writing that Kik will be cut down to an ‘’elite 19-person team’’ which will focus on converting the Kin users into Kin buyers. As mentioned in the best cryptocurrency news sites, this moves comes after the long battle between Kik and the SEC. The SEC sued Kik for breaking the securities laws saying that the company told their investors they could make capital gains on their tokens. Kik fired the employees but fought back saying that the company issued a legal response to the SEC that is long more than 100 pages and still hasn’t gotten an answer.