Kik Interactive, the US-based startup behind messaging app Kik, is shutting down its app, local newspaper Calcalist reported yesterday.
Apparently, the company is moving its users to alternative applications before the imminent closure of its messaging app. In addition, it has also been reported that the company has sent layoff notices to 70 employees of its Israeli-based subsidiary specialized in cryptocurrencies (Kin).
These employees have reportedly been offered to relocate to other companies in the field.
It looks like the decision to shut down the messaging app is related to the company's battle with the US Securities and Exchange Commission (SEC). The regulator has accused Kik of issuing unregistered securities during its ICO in 2017, in which the company attracted $100M.
Kin's communications manager, Kevin Ricoy, has confirmed that some of this information is true and has promised to share more details soon. He said:
"I can confirm a restructure is happening. An official statement with more information will be released shortly. The Kin Foundation is not shutting down, and the development of the Kin ecosystem will continue."
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