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Kik CEO Says Over $5 Mln Spent On Negotiations With SEC

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Messaging startup Kik has spent over $5 million on its ongoing negotiations with the U.S. Securities and Exchange Commission related to the firm's fundraising initiative in 2017, CoinDesk reported quoting Kik CEO Ted Livingston.

In an interview with the cryptocurrency news outlet at Token Summit in New York, Livingston said that both his company and the regulator have been in talks since late 2017 following its initial coin offering.

Kik, which was founded by Livingston, in September 2017 created its very own native cryptocurrency known as Kin based on the Ethereum blockchain. It was launched as an ERC-20 token for the initial sale and distribution of tokens. The company had raised around $98 million in its ICO at the end of 2017.

Meanwhile, the SEC believes the company issued unregistered security.

In November 2018, the SEC recommended an enforcement action against the firm, and filed a formal letter, known as a Wells notice. In its response, Kik highlighted a clause in existing law that says currencies are not securities.

At the end of January, the SEC said it believed that Kik's Token Distribution Event or TDE two years ago violated securities laws.

The SEC is yet to decide whether to pursue the enforcement action against the company.

He noted that kin is being used as a currency, and that over a quarter million people used kin, making it the most-used cryptocurrency in the world.

Livingston added that he does not have any plans to sue the SEC seeking greater regulatory clarity, but it needs to provide clear guidance.

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