District Judge Alvin Hellerstein of the Southern District of New York said the Waterloo, Ont.-founded firm broke the law. Kik is considering appealing. (The Logic)

Talking point: Kik and the Securities and Exchange Commission (SEC) have until October 20 to propose what kind of relief investors in Kik’s ICO should receive. This is the latest setback for Kik. In September 2019, the firm shut down its messaging app to focus on its cryptocurrency. The next month, MediaLab bought the app. Kik has long argued it’s done nothing wrong, and even accused the SEC of trying to “twist the facts.” For the SEC, this case allows it to set ground rules for cryptocurrency regulation. The agency has had success in its attempts to regulate other firms selling crypto. In March, a U.S. federal judge blocked Telegram from distributing digital coins following an SEC complaint that it violated investor-protection laws. The firm subsequently agreed to return US$1.2 billion to investors and pay an US$18.5-million penalty.