Kik has ended a lawsuit with the United States Securities and Exchange Commission (SEC), having paid $5 million to settle the case, according to court documents published on October 20.

• The two parties have “reached agreement on a proposed judgment”, with the $5 million penalty concluding the legal action related to its KIN token
• The ruling also requires Kik to give the SEC 45 days’ notice for any transactions that occur that involve the KIN treasury
• KIK has been engaged in a year long case with the SEC over the nature of the KIN token
• The SEC has argued that the token is a security and thus required registration and adherence to securities laws
• A US judge ruled in September 2020 that the KIN token, the $100 million ICO for which was held in 2017, had violated securities laws