In a new attempt to fight the U.S. Securities and Exchange Commission, Kin has launched a new fund, dubbed DefendCrypto.org. Kin, the crypto project led by messaging service Kik, has been in conflict with the SEC since 2017 when it launched a $100 million initial coin offering sale, which the SEC believes might have been an unregistered security issuance.
“The SEC has been shaping the future of crypto behind the scenes with settlements that set a dangerous precedent and stifle innovation,” Defend Crypto website reads. The company has put aside $5 million in preparation for a lawsuit and is now organising a fundraising campaign, addressing those “fed up with this innovation tax.”
It is currently still awaiting SEC's decision as it submitted its Wells notice last December, meaning the agency intends to take action against the project. So far, the SEC hasn’t taken Kin to court. However, the company is hoping to go to court to “get clarity,” said CEO of Kik and the founder of the Kin Foundation Ted Livingston.
According to Livingston, the only way to get clarity is for someone to go to court, “and we’re prepared to do that.” Kin’s aim is to establish a new Howey Test.