Social media firm Kik has fired back at the US Securities and Exchange Commission (SEC) allegations that the company has broken securities laws in a token fundraise it held back in 2017.
Strong Arguments by Lawyers
Court documents filed on August 6 showed that lawyers for Kik claimed the SEC twisted facts and took quotes out of context to support their complaints against the company. Kik also said the Commission did these because they didn’t have any strong evidence.
In its response, Kik wrote that if the SEC had evidence they promised or offered TDE buyers a chance to profit from their efforts, they would have just outlined all the facts and let them stand. But the complaint filed by the SEC showed a concerted move to “twist the facts by removing quotes from their context.”
The Commission allegedly also misrepresented the testimonies and documents they gathered over the course of their investigation on Kin’s sale in 2017.
Elective and Misleading Portrayal of Events
Kik is confident that these tactics by the SEC would fail if the case reaches the court. They even accused the SEC of not maintaining its federal duty to seek justice. Instead, it resorted to using calculated falsehoods to create a selective and misleading portrayal of events due to its weak claims.
Kik told the SEC back in January that they won’t take the claims against them lightly and would fight back if the SEC pursued its allegations against them. The SEC had reported that Kik violated securities laws in their initial token offering (ICO) that netted $100 million. Kik responded by starting a $5 million funding campaign to support their lawsuit against the SEC.