{"id":387989,"date":"2019-06-28T23:00:50","date_gmt":"2019-06-28T23:00:50","guid":{"rendered":"https:\/\/wncen.com\/?p=387989"},"modified":"2019-06-28T17:11:05","modified_gmt":"2019-06-28T17:11:05","slug":"blockchain-association-defend-crypto","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/blockchain-association-defend-crypto\/","title":{"rendered":"Blockchain Association to Oversee Spending of the Defend Crypto Fund"},"content":{"rendered":"

The Blockchain Association has taken over the “Defend “Crypto” fund setup to help finance the legal battle between Kik<\/a> and the SEC<\/a>. The social messaging firm has stated that it feels the money could be better put to use by the industry collectively.<\/p>\n

Kik<\/a> will take back the original $5 million it had donated to get the fund off the ground. The remaining money\u00a0 be under the Blockchain Association’s care and will go towards protecting crypto assets.<\/p>\n

Kik Donates Donations to Fight the Broader Crypto Fight<\/h2>\n

The social messaging firm originally founded the fund to help it finance its ongoing legal battle against the United States Securities and Exchange Commission.<\/p>\n

The legal dispute centres on the initital coin offering<\/a> the company ran in 2017. The securities regulator claims that the Kin tokens sold to investors are in fact legally classified as a security and therefore the offering was against the law since Kik did not register prior to the sale.<\/p>\n

Meanwhile, Kik holds that its token is not simply an investment and is being used as currency by hundreds of thousands of users. The #DefendCrypto fund was established to help the firm argue this point in court and, if victorious, may well have helped to prompt the drafting of new legislation to define cryptocurrencies outside of existing legal regulations.<\/p>\n

However, earlier today, Kik announced<\/a> that it would be allowing the Blockchain Association to oversee the spending of the more than $2 million remaining in the fund. The reasoning stated for this was that crypto would be best defended as a collective.<\/p>\n

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The Blockchain Association takes over Kik's Defend Crypto fund to advance favorable ecosystem-wide crypto securities precedent https:\/\/t.co\/lPUJbak0Fy<\/a> #bitcoin<\/a> #ethereum<\/a><\/p>\n

— Erik Voorhees (@ErikVoorhees) June 28, 2019<\/a><\/p><\/blockquote>\n