Coinbase & Kik to Launch Anti-SEC Foundation

The $5M backed DefendCrypto Foundation intends to cover legal costs of the proceedings with the SEC; at the 1st stage, they want Kik to win and set a precedent
29 May 2019   825

The largest US cryptocurrency company Coinbase and startup Kik announced the launch of a special fund to cover legal costs in the proceedings with the US Securities and Exchange Commission (SEC). This was announced by CEO Kik Ted Livingston, writes Unchained.

The Foundation was named DefendCrypto, and the partners of the initiative were the startup Circle, the platform ShapeShift, the analytical portal Messari and the non-profit organization for the protection of free Internet Fight for the Future.

The Coinbase custody service will be used to store the assets of the fund. At the moment, Kin has already allocated over $ 5 million in favor of the fund in BTC, ETH, KIN and other cryptocurrencies.

The startup also encourages community members to join the initiative. If the amount of funds raised exceeds the legal costs of the proceedings with the Commission, they will be directed to other support for other projects.

We need to let the SEC know that we won’t be pushed around anymore. It is time to Defend Crypto.
 

DefendCrypto.Com

At the beginning of the year, Kik announced that he intended to challenge the SEC decision on recognizing the project token as a security.

In the course of this trial, the startup and partners of the initiative intend to set a precedent in the context of applying the “new Howey test” to cryptocurrencies.

For the future of crypto, we all need Kin to win. This case will set a precedent and could serve as the new Howey Test for how cryptocurrencies are regulated in the United States. That’s why Kin set up the Defend Crypto fund to ensure that the funds are there to do this the right way. Kin has already spent over $5MM and is committing another $5MM of BTC, ETH, and KIN in a Coinbase account to fight this out on behalf of the industry.
 

DefendCrypto.Com

DefendCrypto emphasizes that the impending trial is crucial for the entire digital currency industry.

When we speak to people in the industry, we need to stop living under this cloud of fear, what will the SEC think? What will the SEC think? Because we all know [crypto] is the next mega-trend of technology and by always having to ask ourselves, 'What will the SEC think?,' we are giving ourselves a fundamental handicap to compete on the global stage. Enough is enough, we need clarity, and the only way we’re going to get clarity is if we go to court, so let’s do that.
 

Ted Livingston

Founder, Kin Foundation

Last year, the Commission began a large-scale investigation of ICO projects. 

SEC to Accuse Opporty International in Illegal ICO

The company had sold $600k worth OPP Tokens, which are being considered by the watchdog as an unregistered securities
22 January 2020   121

The US SEC claims that Opporty International has raised about $ 600,000 from nearly 200 investors in the illegal ICO process, and its founder, Sergey Gribnyak, is accused of conducting a fraudulent initial coin offering process.

According to the US SEC, the blockchain company sold OPP Tokens, which are unregistered securities with digital assets.

The Securities Commission claims that the blockchain company Opporty lied to its users, claiming that their ICO was regulated.

The SEC claims that Opporty has condoned several illegal acts, including the misappropriation of third-party content without endorsement or attribution, to create the false impression that actual users of the platform created this content. Regulators say the defendants falsely told their potential investors that they had “taken on board” the company with more than 6,000 trusted suppliers.

As stated in the SEC complaint, Opporty violated five sections of the Securities and Exchange Act. Regulators are seeking an injunction to allow the company to place digital or other securities. The document also mentions Clever Solution Inc, another business run by Gribnyak, accused of, among other things, extortion.