When Kik’s board of directors decided to support the company’s pivot to crypto, one of the board members described it as a “hail Mary pass.”
It was early 2017 and the Canadian mobile messaging startup, having depleted its venture funding, was months away from firing everyone and calling it quits. The seven most promising leads for a potential acquisition had balked at buying the startup. Kik was in dire straits.
That’s all according to a complaint filed Tuesday by the U.S. Securities and Exchange Commission (SEC), alleging that Kik conducted an “illegal $100 million securities offering” with a September 2017 initial coin offering (ICO) for its kin token.