The US announced on Wednesday that the SEC is ending a lawsuit against Kik Interactive.

The Canadian messaging app criticized the US regulator for not treating the sale of KINs as a stock offering. A district court judge confirmed the SEC’s view in late September, but only today the court issued its final ruling.

As a result of today’s decision, Kik must pay $ 5 million in fines to the SEC and immediately update the commission on any capital increase over the next three years. Since Kik was a company in financial difficulty prior to KIN’s first coin offering (ICO), the question remains open whether it will survive.

In addition to the SEC’s victory over Telegram in a similar ruling, many commentators have seen the recent court decisions end the simple future token contract agreement, which has been the legal basis for some of the largest ICOs in recent years.

Source: CoinTelegraph

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