Messaging app, Kik is recently targeted by the Securities and Exchange Commission (SEC). The SEC had issued a Wells notice, signed by Robert Cohen, Chief of the Cyber Unity of the Division of Enforcement.

It stated that Kin, a crypto currency developed by Kik, might face civil disjunctive action, a permanent injunction, disgorgement, prejudgment injury, and civil money penalties for violating Sections 5(a) and 5(c) of the Securities Act of 1933.

The SEC notice Is ,

“This letter confirms the telephone conversation of November 16, 2018. In that conversation- we advised you that the staff of the Securities and Exchange Commission has made a preliminary determination to recommend that the Commission file an enforcement action against your clients, Kik Interactive Inc. and the Kin Ecosystem Foundation.

This proposed action would allege violations of Sections 5(a) and 5(c) of the Securities Act. The recommendation may involve a civil disjunctive action and may seek remedies that include a preliminary and permanent injunction, disgorgement, prejudgment interest, and civil money penalties.”