Kik, the Canadian social media and messaging applications company, is considering closing its popular Kik messaging application.

In an article published on September 23, Israeli technology publication CTech Calcalistit cites two anonymous sources in Kik, stating that the Canadian-based company is considering closing its messaging application.

A subsequent blog post by Kik CEO Ted Livingston confirmed the reports, stating that the company will close the Kik application, reduce its staff to 19 people and focus on the development of its Kin token (KIN).

Reportedly, 70 employees have received dismissal notifications and have been given the option of moving to a new company that operates in the same sector.

In today’s blog post, Livingston said Kik’s decisions to reduce the size and close his messaging were the result of the company’s need to manage resources in a legal battle with the State Exchanges and Securities Commission. United (SEC).

Kik has been fighting the designation of his initial coin offer in court since the United States Securities and Exchange Commission (SEC) sued the Canadian startup for a supposedly unregistered USD 100 million token offer.

Steven Peikin, co-director of the SEC Compliance Division, said at the time that, by making his sale of Kin token (KIN), Kik “deprived investors of information to which they were legally entitled and prevented them from making decisions to informed investment. ”

Kik says the SEC has no solid evidence.

Kik’s lawyers stated that the SEC took the citations out of context, distorted what happened to support their accusations and misrepresented the facts because they have no solid evidence to support their accusations.

Meanwhile, Kik launched a USD 5 million crypto initiative to finance its claim against the SEC, which was assumed by the Blockchain Association, a collective of defenders involved with the blockchain industry.

Kik believes that the Blockchain Association “will be in the best position to objectively allocate resources to the most impactful initiatives.”

Source: Cointelegraph