Kik Interactive to Pay $5M Penalty According to Proposed Settlement with SEC

The U.S. regulator SEC (Securities and Exchange Commission) submitted on Tuesday a proposed final judgment regarding its case against Kik Interactive ("Kik") to the New York Southern District Court. In the proposal, the commission requires Kik to pay a penalty of $5 million for conducting an illegal $100 million securities offering of digital tokens. 

In June 2019, SEC launched an action against Kik, alleging that the company sold tokens valued at $100 million to U.S. investors without registering their offer and sale, which violated the U.S. securities laws.

According to the documents filed with the Court, the SEC and Kik Interactive have reached agreement on the proposed final judgment. If the court approves the proposal, Kik would also be permanently banned from committing future violations in addition to paying the aforementioned fine.

​Under the proposed judgment, for a period of 3 years after entering the Final Judgment, Kik must report to the SEC 45 days before participating, directly or indirectly, in an issuance, offer, sale or transfer of any of its already and newly issued digital assets, including the three trillion Kin tokens the company issued on September 26, 2017.  

If approved, the proposed Final Judgment would conclude SEC's action against Kik.