Tanner Philip, Technical Advisor to the CEO at Kik shared the announcement on 28 June that the Defend Crypto fund would be governed by the Blockchain Association.
Tanner indicated that since the inception of the fund in May, Kik had been striving to convey its grievance. He emphasized that public contribution to the fund was not for the sole purpose of paying legal bills, rather it was targeted to make the story public. Tanner highlighted Kik’s seriousness on the issue which had committed 5 million U.S. dollars to take on the Securities and Exchange Commission (SEC) in the court. He noted the core nature of the issue and the importance of public involvement and funding.
Tanner expressed on the need for this fund and its scalability as –
“It was never our intention for Defend Crypto to be just about Kik. We launched Defend Crypto to show that we are serious about taking on this fight, and to show that others don’t have to go it alone. In the last four weeks we have had many projects reach out privately to share stories very similar to ours. They see the timeline of Kik’s battle on DefendCrypto.org and can see themselves on a similar path. This showed us that although Kik is first, there are many more to come.”
Tanner pointed out on Kik’s stance to face SEC in the court. He opined that such instances could potentially set a precedent. Tanner further added that the outcome of this incident could well set the benchmark for a new Howey Test. He sustained by adding that in spite of such legal implications, Kik was appreciative of the support from the industry. Tanner stated that Kik would remain open, transparent and collaborative as possible.
In January, there were reports of the imminent high-profile battle of Kik with the SEC. The bone of contention was the Kik’s cryptocurrency Kin which was launched in an Initial Coin Offering (ICO) back in 2017. The SEC believed that Kik had committed a securities infraction implying a difference of opinion related to Kin.
Tanner threw light on the fact that the Defend Crypto fund started a spiraling effect and initiated multiple discussions. He pointed out that Kik may not be the only party to face the whip of SEC. The SEC had strategically segregated parties into believing their case was unique. Kik enacted a move to make the Wells Notice and Wells Response public by being aware that their case was not singular. Tanner expressed disbelief into the number of parties sharing the adversity.