According to a filing on Wednesday that Kik made at a local court, the SEC was manipulating the evidence and taking all of the claims out of context in order to somehow make Kik look bad.
The filing mentions that the 2017 token sale conducted by Kik was completely legal and had nothing to do with the violations that the SEC is putting forward.
The CEO of Kik, Ted Livingston mentioned that the SEC had cut quotes and taken them out of context to push their agenda, which was one of the least likely things they’d expect from a US regulator.
As already reported by Cryptopolitan, the SEC is challenging Kik for its 2017 token sale, which it alleges was illegal as it didn’t comply with US laws. Although Kik is based in Canada, it was still catering to the US customer base, therefore taking this case under the SEC’s jurisdiction.
The allegations were quickly denied by Kik’s lawyers who claimed that the token sale had nothing in resemblance to securities offerings, therefore did not fall under the SEC regulation of the United States.
As it stands right now, it seems that the dispute is going to continue with newer allegations coming from both sides.
Should Kik be recognized as guilty in conducting unauthorized security offering it will have to face a huge fine alongside the millions of dollars it has already spent on the lawsuit.