Judge Alvin Hellerstein sided with the US Securities and Exchange Commission (SEC) in the case against the Canadian company Kik. The SEC was suing the developer of the messenger Kik over an ICO he conducted in 2017, during which the company raised about $100 million.
The regulator accused the company of unregistered sale of securities. Both parties filed motions in which they asked the court to support their own positions without bringing the case to further consideration.
The judge noted the unique nature of the case, stressing that he had no “direct precedent” to justify his decision due to the innovative nature of blockchain technology. By October 20, the SEC and Kik together must submit to the court a proposal to eliminate the consequences of the violation. Otherwise, they must indicate their differences of opinion and notify the court about them by the same date.