Kik agreed to a $5 million fine in the SEC proceeding over $100 million ICO

The U.S. Securities and Exchange Commission (SEC) and Messenger Kik presented a joint proposal to resolve the current dispute. Under the terms of the agreement, Kik is to pay a $5 million fine for organizing an illegal ICO campaign, during which it managed to attract $100 million to develop its cryptographic project Kin.

Earlier, the judge upheld the SEC's position in this case. Now he also has to approve the proposal of the participants in the proceedings.

The SEC sued Kik in May 2019. The regulator claimed that ICO Kin was an illegal sale of securities because it was not registered. Kik, for his part, promised to defeat the SEC in court, thus protecting the interests of the entire cryptographic industry. The lengthy litigation with the regulator, however, proved to be too costly. The company subsequently reduced 80 percent of its employees and set up a $5 million fund to protect the interests of cryptographic startups affected by the SEC.

Also under the terms of the agreement, in the future, Kik must give the SEC 45 days' notice of its intentions if it intends to carry out any operations with the reserves in the Kin storage facility.

In September, Kik's legal representative said the SEC should have developed clear rules for the cryptographic industry rather than publishing "conflicting statements".

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