The US Securities and Exchange Commission (SEC) and messenger developer Kik have reached an agreement on the 2017 token sale case. If the court approves it, the Canadian company will pay a $ 5 million fine.
The agreement also obliges Kik to notify the regulator of any transactions related to the Kin vault reserves over the next three years.
In 2017, the company raised $ 98 million in an ICO to develop the Kin token and ecosystem based on it. In 2019, the American regulator accused Kik of an unregistered sale of securities.
In October 2020, a court for the Southern District of New York ruled that the Kik token sale violated the Securities Act.
Earlier, the head of the company, Ted Livingston, promised to fight the SEC "to the last dollar", even if it would lead to bankruptcy. This was preceded by a decision to terminate the work of the messenger and reduce staff in order to accumulate financial resources to continue the litigation with the regulator.