Kik, the extremely popular Canadian social media and messaging app is considering a full shutdown.

Yesterday, the tech publication CTech Calcalistit cited two anonymous sources which revealed that the Canada-based company is seriously considering the full shutdown of its messaging app.

Of course, the initial rumors were taken with a grain of salt. A few hours later however, a medium blog post by Kik’s CEO Ted Livingston instantly confirmed the rumors.

Livingston revealed that the firm will indeed shut down the Kik app. Additionally, the staff will be reduced to 19 people, which will primarily focus on the company’s Kin (KIN) token development.

The full shutdown resulted in a lot of layoffs

According to the initial information, 70 of Kik’s employees have received layoff notices and were given the option to transfer to another company which operates in the same or similar sector.

In the blog post, Livingston revealed that the main reason for the company’s full shutdown is because the company needed to very carefully manage its resources in the legal battle with United States Securities and Exchange Commission (SEC).

The legal battle has been ongoing ever since Kik’s initial coin offering designation when the SEC sued the company for allegedly not registering the $100 million token offering.

The Co-director of the SEC’s Division of Enforcement Steven Peikin, stated at the time that the Canadian startup deprived many investors of what they were legally owed and prevent countless investors from making timely and informed investment decisions.

Earlier this year, Kik’s lawyers stated that the SEC took multiple quotes out of context and twisted countless facts to support their allegations. They also stated that the SEC heavily misrepresented the facts as t hey have no reliable evidence to support their claims.

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Legal Battle With The SEC Over ICO |
Legal Battle With The SEC Over ICO |
Legal Battle With The SEC Over ICO |
Legal Battle With The SEC Over ICO |

Legal Battle With The SEC Over ICO |

Legal Battle With The SEC Over ICO |