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Kik would need $10 to $20 million dollars if they intend to fight the SEC says Stephen Palley

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Kik would need $10 to $20 million dollars if they intend to fight against the SEC says Stephen Palley
Source: Unsplash

Stephen Palley, a well-known lawyer in the crypto-space spoke to CNBC’s CryptoTrader Ran NeuNer and opined his views on the lawsuit against Kik by the SEC.

Kik’s issue with the SEC was made public when the company announced that they were planning to fight against the lawsuit brought forth by the SEC. The company has since raised approximately $5 million funds in crypto, to fight SEC.

Stephen Palley explained that the SEC had filed the case against Kik in a Federal Court for an ‘unregistered $100 million token offering in 2017’ and not securities fraud. Palley added:

“This is the first instance of the SEC actually going to a Federal Court and suing a token issuer for violating the registration provisions of the Securities Act of 1933.”

He added that all the other cases which have failed to register securities have been filed and settled in administrative courts. and that this was “pretty big news”. Palley further added that the SEC’s strategy on focussing with “failing to register security” was a “wise” move but also mentioned that “it is not an un-winnable case”.

Palley mentioned that Kik had already spent $5 million as seen on the “defend crypto” website even before going to court and that it would take them a lot more than that if the case were to proceed. He said:

“I don’t think that $5 million is enough… Defense lawyers for this sort of case can cause $1000 an hour sometimes more, depends on depositions, whether it goes to trial, how the appeal cost… it can easily cost $10 to $20 million. I don’t think $5 million will be enough if they intend to take this all the way through.”

Ted Livingston, the CEO of a Canadian-based messaging startup Kik opined that the SEC’s allegations were a “gross mischaracterization and misleading facts”. He also mentioned that they would take this all the way to the end.





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time writer at AMBCrypto and a part-time novice trader.

Bitcoin

Bitcoin falls by over 5% in an hour as major correction ensues; altcoins follow suit

Namrata Shukla

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Source: Pixabay

Bitcoin [BTC], the largest cryptocurrency in the world, revisited its glorious highs over the past few weeks. However, it would seem that Bitcoin is falling back to earth since the coin was falling by 5.88% in an hour, at press time.

The coin while falling by 5.88% over the hour, was being traded at $12,251 on Bitstamp exchange. The market cap of the coin was reported to be $224 billion and the 24-hour trading volume was $41.813 billion. Over the past 24 hours, BTC fell by 9.55%, while noting a growth of 35.78% over the week.

Source: Trading view

Source: Trading view

The Bitcoin community was rooting for the coin to cross $14k and after the strong bullish momentum showcased by the coin, the target was not a far fetched one. However, the crash suddenly pulled its price below $13k. Twitter user, @aquinastheory, explained the trend,

“First MA/EMA cross to the downside since June 2nd and the time before May 4th. Either new distribution/accumulation is gonna occur here within the next few days, weeks or we’re going down for sure. #bitcoin $btc #crypto #forexsignals”

Source: Twitter

Source: Twitter

The coin was highly traded on Binance with BTC/USDT pair, reporting a trading volume of $1.881 billion. BW.com followed Binance, noting a volume of $1.686 billion with BTC/USDT pair. The third place was taken by Huobi Global with BTC/USDT pair, with the volume reported to be $1.578 billion.





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