The judge approved the agreement between the US Securities and Exchange Commission (SEC) and the developer of the Kik messenger for the 2017 Tokensale case. The company believes that the decision removes the charges of violation of token Kik’s securities laws and removes obstacles to asset trading.
The Canadian company will pay a $5 million fine. It also undertakes to report Bitcoin Future app to the regulator within the next three years, 45 days in advance, any transactions involving reserves in the Kin vault.
„In short, Kik will be fine. With the exception of a monetary penalty, the assets remain in the company’s ownership, including the Kin reserves. Thanks to the agreement, the developers will continue to actively develop the open source Kin SDK and the new Code wallet application,“ says the company.
The messenger’s management believes that the court’s verdict has the potential to change the stock exchanges‘ attitude towards Kin’s listing.
„The SEC has not asked Kin to be listed as a security. Prior to the decision, token trading opportunities on the leading stock exchanges looked limited. We can now list on platforms that have previously expressed such interest,“ the company expects.
The blog mentions Kik’s plans to invite a new Executive Director in November and to make the planned transition to the Solana bloc in December. The company notes that the community remains very active.
In October 2020, a court in the Southern District of New York ruled that the token Kik violated the Securities Act.
Earlier, the company’s CEO, Ted Livingstone, had promised to fight the SEC „to the last dollar“, even if this would lead to bankruptcy. This was preceded by the decision to shut down the messenger and downsize the staff in order to accumulate financial resources to continue litigation with the regulator.
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