Judge Alvin Hellerstein granted a SEC request for a summary judgment in Kik's case on Wednesday.
The SEC sued the developer of the Kik messenger for its 2017 Initial Coin Placement (ICO), during which the company managed to raise about $100 million. Both parties filed motions asking the court to support their own positions without bringing the case to further consideration.
"The US Securities and Exchange Commission filed a lawsuit against Kik Interactive Inc., accusing it of conducting an unregistered digital token offering in violation of Section 5 of the Securities Act. The parties have filed counter motions for summary proceedings," Hellerstein said in a decision. - I am not questioning the facts of the offer and sale of Kik securities without registration, in violation of section 5. Thus, the application of the SEC is subject to approval, and the application of Kik is denied.
By October 20, both parties together must submit to the court a proposal for liquidation of the consequences of the offense. Otherwise, they must indicate their differences of opinion and notify the court by the same date.
Against the backdrop of today's announcement, the token Kin fell by another 50% to $0.000005.