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SEC wins summary judgment vs. Kik for securities law violations in ICO
*THREAD TIME*
*THREAD TIME*
https://www.courtlistener.com/recap/gov.uscourts.nysd.516941/gov.uscourts.nysd.516941.88.0_2.pdf (h/t @collins_belton)
Court treats issue as matter of first impression, since prior court judgments were for ancillary issues (e.g., motion for prelim judgment in Telegram)
Not only was the ICO (sale of KIN to public) a violation of securities laws, but because it was integrated with the private pre-sale (which was a sale to accredited investors otherwise structured to comply with a private placement exemption), the private pre-sale did too.
Like I told you guys--the "unconstitutional" argument was DOA.
fixing broken threading https://twitter.com/lex_node/status/1311412656666898433
fixing broken threading (again) https://twitter.com/lex_node/status/1311412224510967808
A sincere wish--let's all stop crafting clever arguments that tokens at early stages of networks are not securities.
Time to grow up, dig in and start creating modifications to the securities laws which allow tokens to be securities without ruining their intended purposes.
Time to grow up, dig in and start creating modifications to the securities laws which allow tokens to be securities without ruining their intended purposes.
As a reminder, I have made many *very* specific proposals in this direction--all done for free with probably 100+ hours invested, because no one wants to fund an attorney in this space who reads the law correctly. https://medium.com/@lex_node/defining-decentralization-for-law-58ca54e18b2a
To commemorate the occasion, I am turning my "Debunking Securities Law Myths About Tokens" into free content. As you will see, it predicted pretty much all of the court's holdings and reasoning: https://lexnode.substack.com/p/debunking-securities-law-myths-about
