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   480

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.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   304

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.