Canadian firm accuses SEC of ‘twisting the facts’

Ontario-based Kik Interactive Inc. says it has asked for an early court date to formally challenge allegations levelled against it by the U.S. Securities and Exchange Commission in a suit filed two months ago.

The U.S. regulator has alleged that Kik didn’t provide proper disclosure in 2017 when it sold about one trillion digital tokens called Kin for US$100 million, with US$55 million of the total coming from U.S.-based buyers.

The company claims in its reply that the tokens are a currency that aren’t covered by U.S. securities laws.

Based in Kitchener, Ont., Kik Interactive has said since the SEC suit was announced in June that it looked forward to getting clarity about the legal framework around its Kin digital tokens and other crypto currencies.

Kik chief executive Ted Livingston adds in a statement that the SEC has “repeatedly twisted the facts to make its case” and that the regulator wouldn’t have done so if it had strong evidence.

The company has filed a 130-page formal answer to the SEC with the U.S. District Court for the Southern District of New York, which is handling the case.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.