The US Securities and Exchange Commission (SEC) has proposed Kik to pay a $5 million fine over a $100 million unregistered initial coin offering (ICO) dated back in 2017.
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According to the published settlement, Kik will also have to give the watchdog 45 days notice if it starts another token sale. The proposal is yet to be approved by the judge.
Previously in October, Judge Alvin Hellerstein granted the SEC’s claim in the case against the Canadian messaging company Kik.
The SEC sued the developer of the messaging service Kik in relation to the ICO it held back in 2017 and in which it raised approximately $100 million. According to the regulator, the company conducted an unregulated securities sale. Both parties cross-moved for summary judgment.
SEC has been after the ICO market for a long time now. iHodl previously reported that the SEC sued John McAfee, a well-known crypto advocate, for promoting shilling initial coin offerings (ICO).
According to a civil complaint, McAfee allegedly made over $23 million for promoting at least seven ICOs to his followers on Twitter. The majority of the ICOs promoted by McAfee “were materially false and misleading for several reasons,” the SEC states.
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