Kik Blames The SEC Of Manipulating Facts In The Lawsuit

Kik blames the SEC, the United States-based regulator for manipulating facts and taking things out of context in the lawsuit against the startup over the 2017 token sale as we learned about it in the altcoin news previously on DC Forecasts.

In the 130-page filing, Kik issued a rebuttal of the SEC’s arguments and denied the core allegations that the company conducted unregistered securities offering. The CEO of the company Ted Livingston stated that the regulator is playing dirty in its June complaint by trying to make the company ‘’look bad’’:

 “What really surprised us is just what lengths the SEC went to twist the facts. They cut quotes and [took them out of context] and that’s something we didn’t expect from the SEC.”

The SEC complaint alleges that Kik offered unregistered securities by offering kin tokens to investors attempting to keep the messaging platform from shutting down because the revenue failed to materialize. Kik says that the public offerings of the kin were not a securities sale but that they only created a highly selective and misleading picture of the token sale. The plaintiffs met with the judge in the US court for the Southern District of New York to figure out a date for the trial. Livingston says he only wants this to be resolved as fast as possible.

Kik blames the SEC because the complaint includes a number of quotes from the board members of the company aiming to show that the company needed to conduct the token sale as a securities offering. The one problematic thing was a comment from an unidentified board member who referred to the token sale as ‘’hail Mary’’ showing that the company is in fact desperate. However, Kik says that the board member did say those words but not as a final attempt to save a ‘’ dying company.’’

As we can read in the latest cryptocurrency news today, the SEC also says that a consultant warned Kik that the Kin offering was a potential securities offering that has to be registered by Kik says that this was also taken out of context. Kik emphasizes that they have not conducted a single sale for the Kin token but rather two sales: a public one and a private Simple agreement for Future tokens.