Internet Security

SEC expands its war on cryptocurrency companies with a lawsuit against Kik

The Securities and Exchange Commission has sued Kik Interactive for the $100 million token sale the company announced two years ago. It’s an expansion of legal actions that began last year as the SEC seeks to rein in companies that the regulatory agency thinks issued securities illegally. In the lawsuit, the SEC claims that Kik…


The Securities and Exchange Commission has sued Kik Interactive for the $100 million token sale the company announced two years ago.

It’s an expansion of legal actions that began last year as the SEC seeks to rein in companies that the regulatory agency thinks issued securities illegally.

In the lawsuit, the SEC claims that Kikconducted an illegal $100 million offering of digital tokens by selling the tokens to U.S. investors without registering their offer and sale as required under U.S. law.

The complaint alleges that Kik had been losing money for years on its online messaging application and that the company’s management predicted it would run out of money in 2017, precisely when it began laying the groundwork for the launch of its digital token, “Kin.”

The creation of an online marketplace selling through the company’s messaging service was financed by the sale of 1 trillion digital tokens to raise $100 million dollars.

Critical to the SEC’s case is the allegation that Kik marketed its Kin tokens as an investment opportunity, telling investors that rising demand would drive up the value of Kin and that Kik would work to boost that demand.

Kik was supposed to do that by building systems like a Kin transaction service, a rewards system for companies that used Kin, and by incorporating the tokens into the company’s existing messaging app. None of those features existed at the time of the offering, the SEC alleges.

The company also said that it would keep three trillion tokens that could trade on secondary markets and would increase in value as other investors speculated on the currency’s success.

Chat app Kik takes on Facebook with developer ecosystem built on the blockchain

“By selling $100 million in securities without registering the offers or sales, we allege that Kik deprived investors of inf

Read More

Be the first to write a comment.

Leave a Reply

Internet Security

After data incidents, Instagram expands its bug bounty

Facebook is expanding its data abuse bug bounty to Instagram . The social media giant, which owns Instagram, first rolled out its data abuse bounty in the wake of the Cambridge Analytica scandal, which saw tens of millions of Facebook profiles scraped to help swing undecided voters in favor of the Trump campaign during the…


Facebook is expanding its data abuse bug bounty to Instagram.

The social media giant, which owns Instagram, first rolled out its data abuse bounty in the wake of the Cambridge Analytica scandal, which saw tens of millions of Facebook profiles scraped to help swing undecided voters in favor of the Trump campaign during the U.S. presidential election in 2016.

The idea was that security researchers and platform users alike could report instances of third-party apps or companies that were scraping, collecting and selling Facebook data for other purposes, such as to create voter profiles or build vast marketing lists.

Even following the high-profile public relations disaster of Cambridge Analytica,Facebook still had apps illicitly collecting data on its us

Read More

Continue Reading
Internet Security

OneTrust raises $200M at a $1.3B valuation to help organizations navigate online privacy rules

GDPR, and the newer California Consumer Privacy Act, have given a legal bite to ongoing developments in online privacy and data protection: it’s always good practice for companies with an online presence to take measures to safeguard people’s data, but now failing to do so can land them in some serious hot water. Now —…


GDPR, and the newer California Consumer Privacy Act, have given a legal bite to ongoing developments in online privacy and data protection: it’s always good practice for companies with an online presence to take measures to safeguard people’s data, but now failing to do so can land them in some serious hot water.

Now — to underscore the urgency and demand in the market — one of the bigger companies helping organizations navigate those rules is announcing a huge round of funding. OneTrust, which builds tools to help companies navigate data protection and privacy policies both internally and with its customers, has raised $200 million in a Series A led by Insight that values the company at $1.3 billion.

It’s an outsized round for a Series A, being made at an equally outsized valuation — especially considering that the company is only three years old — but that’s because of the wide-ranging nature of the issue, according to CEO Kabir Barday, and OneTrust’searly moves and subsequent pole position in tackling it.

“We’re talking about an operational overhaul in a company’s practices,” Barday said in an interview. “That requires the right technology and reach to be able to deliver that at a low cost.” Notably, he said that OneTrust wasn’t actually in search of funding — it’s already generating revenue and could have grown off its own balance sheet — although he noted that having the capitalization and backing sends a

Read More

Continue Reading
Internet Security

UK to toughen telecoms security controls to shrink 5G risks

Amid ongoing concerns about security risks posed by the involvement of Chinese tech giant Huawei in 5G supply, the U.K. government has published a review of the telecoms supply chain, which concludes that policy and regulation in enforcing network security needs to be significantly strengthened to address concerns. However, it continues to hold off on…


Amid ongoing concerns about security risks posed by the involvement of Chinese tech giant Huawei in 5G supply, the U.K. government has published a review of the telecoms supply chain, which concludes that policy and regulation in enforcing network security needs to be significantly strengthened to address concerns.

However, it continues to hold off on setting an official position on whether to allow or ban Huawei from supplying the country’s next-gen networks — as the U.S. has been pressurizing its allies to do.

Giving a statement in parliament this afternoon, the U.K.’s digital minister, Jeremy Wright, said the government is releasing the conclusions of the report ahead of a decision on Huawei so that domestic carriers can prepare for the tougher standards it plans to bring in to apply to all their vendors.

“The Review has concluded that the current level of protections put in place by industry are unlikely to be adequate to address the identified security risks and deliver the desired security outcomes,” he said. “So, to improve cyber security risk management, policy and enforcement, the Review recommends the establishment of a new security framework for the UK telecoms sector. This will be a much stronger, security based regime than at present.

“The foundation for the framework will be a new set of Telecoms Security Requirements for telecoms operators, overseen by Ofcomand government. These new requirements will be underpinned by a robust legislative framework.”

Wright said the government plans to legislate “at the earliest opportunity” — to provide the regulator with stronger powers to to enforcement the incoming Telecoms Security Requirements, and to establish “stronger national security backstop powers for government.”

The review suggests the government is considering introducing GDPR-level penalties for carriers that fail to meet the strict security standards it will also be bringing in.

“Until the new legislation is put in place, government and Ofcom will work with all telecoms operators to secure adherence to the

Read More

Continue Reading
Internet Security

Daily Crunch: A bad month for the internet

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here. 1. It was a really bad month for the internet In the past month, there were several major internet outages affecting millions…


The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. It was a really bad month for the internet

In the past month, there were several major internet outages affecting millions of users across the world. Sites buckled, services broke, images wouldn’t load, direct messages ground to a halt and calendars and email were unavailable for hours at a time.

What can we learn? For one, internet providers need to do better with routing filters. Secondly, perhaps it’s not a good idea to run new code directly on a production system.

2. Twitter and Facebook reportedly not invited to White House ‘social media summit’

Trump’s White House is hosting what it calls “a robust conversation on the opportu

Read More

Continue Reading