SEC versus Kik: SAFTs are far from safe

On the last day of September 2020, Judge Alvin K. Hellerstein dashed the hopes of Kik Interactive, crypto entrepreneurs and Simple Agreement for Future Tokens, or SAFT, proponents in general by ruling in favor of the U.S. Securities Exchange Commission’s motion for summary judgment in SEC v. Kik Interactive.

The case was instigated by the SEC in June 2019 when the SEC filed an enforcement action against Kik Interactive Inc., (referred to in the complaint and here as Kik), a social media company that had used SAFT to launch its “Kin” crypto token in September 2017.

  1. Is there a single plan of financing?
  2. Do the sales involve the issuance of the same class of securities?
  3. Were the sales made at or about the same time?
  4. Was the same type of consideration received?
  5. Were the sales made for the same general purpose?

Carol Goforth is a university professor and the Clayton N. Little Professor of Law at the University of Arkansas (Fayetteville) School of Law.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link