The U.S. Securities and Exchange Commission has sued Ontario-based Kik Interactive Inc. for conducting an “illegal” US$100 million securities offering of digital tokens. The securities regulator said in a complaint filed Tuesday that the Kitchener-based company sold the tokens to U.S. investors in 2017 without registering their offer and sale, or providing proper disclosure, as required by U.S. securities laws. Investors based in Canada, however, were barred from buying Kin after what Kik called “weak guidance” from the Ontario Securities Commission. “At the time Kik offered and sold the tokens, the SEC alleges these services and systems did not exist and there was nothing to purchase using Kin,” it said. The regulator added in its complaint that Kin tokens recently traded at roughly half of the value that public investors paid in the offering.

Source: thestar June 04, 2019 18:22 UTC