How Did the SEC's Action against Kik (Kin Token) Differ from Telegram? ▴ Learn

How Did the SEC’s Action against Kik (Kin Token) Differ from Telegram?

Both cases involved the SEC alleging the sale of unregistered securities, but the Kik case proceeded to trial, resulting in a summary judgment in favor of the SEC. Unlike Telegram, which settled and abandoned its token, Kik continued to fight the charges.

The court's ruling in Kik reaffirmed the Howey Test's application, specifically finding that the sale was an investment contract. The difference lies in the litigation path and the final outcome of the respective projects.

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