SEC Twists Fact, Kik Messanger Team Says

Kik team prepared and submitted to the court a response to the SEC in a 131-page document, in which it accused the agency of distortion of facts
07 August 2019   2774

The confrontation between the US Securities and Exchange Commission (SEC) and the Kik messenger developer company continues. For example, the Canadian Kik Interactive prepared and submitted to the court a response tp the Commission in a 131-page document, in which it accused the agency of fraud and distortion of facts.

Kik claims that the Kin token is not a security, as claimed by the SEC, but is just a token built into the application for buying games, digital products or other services in Kik Messenger.

According to Kik representatives, the Commission must prove that Kin tokens were sold in violation of the Securities Act.

Since Kin is not itself a security, the SEC must show that it was sold in a way that violates the securities laws. The SEC had access to over 50,000 documents and took testimony from nearly 20 witnesses prior to filing its Complaint, yet it is unable to make the case that Kik’s token sale violated the securities laws without bending the facts to distort the record.
 

Eileen Lyon

General counsel, Kik

In particular, Kik notes that the agency quoted selective quotes or took words out of context when drawing up the charge.

In addition, company representatives are confident that SEC’s assumptions about Kik’s unfavorable financial position were included in the lawsuit for the sole purpose of exposing Kik in a negative light.

What really surprised us is just what lengths the SEC went to twist the facts. They cut quotes and [took them out of context] and that’s something we didn’t expect from the SEC.
 

Ted Livingston

CEO, Kik

He also noted that the SEC is trying to create the appearance that the Kin project was an act of despair, and not “than the bold move that it was to win the game, and one that Kakao, Line, Telegram and Facebook have all now followed.”

The SEC sued the Kik messenger developer, accusing her of conducting an unregistered sale of securities during the ICO in 2017.

However, Kik said it was "expecting something like that." It is worth noting that Kik announced the launch of a special fund to cover legal costs during the proceedings with the SEC back in May, since at the beginning of the year the company announced that it intends to challenge the Commission’s decision to recognize the project token as a security.

Neo Foundation to Withdraw $11M From Cold Wallet

These funds will be used to finance its operations in currrent reporting year and $190M are stiill in the vault
26 March 2020   889

On March 25, the Neo Foundation announced the withdrawal of 1,660,865 NEO ($ 11 million) from the cold wallet to finance its activities in the current reporting year. About $ 190 million are still in reserves.

According to rules established in the Neo White Paper, the NEO tokens maintained by the Neo Foundation are mainly used to continuously support Neo's technological development, ecosystem growth, community expansion and the normal operations of the foundation and related organizations. 

 

Neo Foundation

According to the publication, 1,660,865 NEOs were transferred “from a blocked account to a current account”. As the information on the blockchain shows, these funds were directed to an address containing 14.6 million NEO or about $ 100 million. The project does not disclose who controls this address and what fate awaits the released tokens.

White paper Neo suggests that project costs in any given year should not exceed 15 million tokens. In the near future, a financial report for 2019 will be published.

At the time of publication, NEO is the 23rd largest asset on the market with a capitalization of $ 479 million. The price of one NEO is $ 6.79.