Kin Unveils $5 Million Fund to Take Up Legal Battle with SEC

The Kin Foundation, the organization behind Kik’s digital currency, has launched an initiative called DefendCrypto.org with a fund of $5 million for a legal battle with the Securities and Exchange Commission (SEC).

Revealed by Ted Livingston, founder and CEO of the Canadian messaging platform, during a crypto-focused podcast named Unchained, the organization is seeking a clear definition of a digital token falling under the category of securities.

“When we speak to people in the industry, we need to stop living under this cloud of fear, what will the SEC think? What will the SEC think? Because we all know [crypto] is the next mega-trend of technology and by always having to ask ourselves, 'What will the SEC think?' we are giving ourselves a fundamental handicap to compete on the global stage,” Livingston said.

“Enough is enough, we need clarity, and the only way we’re going to get clarity is if we go to court, so let’s do that.”

Flashback

Kik’s trouble with the regulator started only days after it secured $98 million in late 2017 via a token sale.

The Initial Coin Offering (ICO) Initial Coin Offering (ICO) An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco Read this Term) alarmed the market watchdog for its resemblance with securities, and the foundation was accused of selling unregistered securities.

The SEC sought clarification, and the project promoters had to give many official testimonies and were also issued subpoenas, the founder revealed.

The situation between the two parties is still strained as the regulator informed that it is going to pursue an enforcement action against the messaging platform, however, to date, the SEC did not initiate the legal proceedings.

If the regulator is not willing to take up the legal battle, Livingston is now determined to file a legal proceeding against them, seeking a clear definition of tokens which are classified as securities.

The foundation has created a Coinbase Custody account and deposited $5 million in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, Ether, and Kin to cover the legal expenses of the court proceedings. They are also taking donations from any interested party who are willing to support the legal battle.

Meanwhile, a recent report by Coindesk revealed that the Kin Foundation already spent $5 million in its engagement with the US regulator.