Canadian Messaging Service Kik Burns $5 Million Fighting SEC Over Utility Tokens, Now Raising $5 Million More to Continue Battle

Ted Livingston, the CEO of Canadian-based messaging powerhouse Kik, recently revealed the Ontario-based company spent over $5 million on ongoing negotiations with the United States Securities Exchange Commission (SEC). As of May 2016, Kik Messenger had approximately 300 million registered users and was used by approximately 40% of United States teenagers. In 2017, they raised $98 million in an initial coin offering (ICO) to support its kin cryptocurrency and ecosystem, but they have been at loggerheads with the SEC ever since.

Livingston, in a recent interview with Coindesk — CEO Ted Livingston and Patrick Gibbs, a partner at law firm Cooley LLP, announced on the UnChained Podcast Tuesday, the campaign is being launched in the hopes that:

“…a lawsuit would eventually result in a new Howey test for crypto tokens, to determine which ones are a security.”

Defend Crypto, a new website has been set up for supporters to contribute to the fundraising effort not just for Kik but also into the future for other companies.

Originally published at Blockchain News.