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From the complaint https://www.sec.gov/litigation/complaints/2019/comp-pr2019-8... :

> Kik has agreed to jurisdiction in the United States concerning disputes relating to Kin. When selling Kin to the general public, Kik required investors to agree that all disputes about the purchase and use of Kin would be heard by an arbitrator or court in the United States, specifically in the State of Delaware.

So they should have known. And maybe they did, thinking that if they tried to register with the SEC their fundraise would not be allowed and the company would almost certainly declare bankruptcy; but that if they did not register, even after the DAO report, they'd at least have a chance of sneaking through, and if they were caught, they might avoid personal liability. Many people disobey the law out of desperation, and if nobody goes to jail, then disobedience becomes even more likely for those in such a situation.



>their fundraise would not be allowed and the company would almost certainly declare bankruptcy

That was my best idea as well as to what they were thinking at the time.

Take money now and worry about the consequences later, or go bankrupt now and worry about that now.




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