Canadian messaging app takes U.S. government agency to court over crypto investigation
Kik Interactive Inc., popular messaging app turned crypto company, is bringing the United States’ federal agency, Securities and Exchange Commission (SEC), to the courthouse.
Kik Interactive Inc. was founded in 2009 in Waterloo, Ontario, Canada, by Ted Livingston and Christopher Best.
The company’s initial coin offering (ICO) for KIN, their cryptocurrency, raised more than $100 million USD in 2017. Shortly after, the company officially launched their own cryptocurrency, KIN. However, it’s the 2017 ICO that the SEC is interested in.
According to Livingston’s blog on Medium, the SEC reached out to Kik Interactive Inc. a few days after their ICO sale began. The conversation began with “friendly contact” but then “slowly ramped up” when the SEC started serving subpoenas to Kik Interactive Inc. and eventually a formal testimony.
Livingston and Best launched Kik Messenger after a group of University of Waterloo students wanted newer and better ways of communicating on their mobile phones.
This isn’t the first time Kik Interactive has been under the microscope. In the past, it has been investigated after it was revealed the messaging app was used for child exploitation.
With the public announcement of the lawsuit against SEC Kik sets a pretty remarkable precedent, because generally, it is the SEC that currently sues and investigates cryptocurrency companies.