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.
- Is there a single plan of financing?
- Do the sales involve the issuance of the same class of securities?
- Were the sales made at or about the same time?
- Was the same type of consideration received?
- 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.
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.