Kik Interactive Inc.’s digital token sale came under scrutiny in a New York court, when a judge pressed the app maker if it followed securities laws in what the SEC said was an illegal $100 million initial coin offering.

Judge Alvin Hellerstein of the U.S. District Court for the Southern District of New York asked Kik to explain why its token called Kin wasn’t a security during oral argument in a case over the sale Thursday. The Securities and Exchange Commission has alleged the cryptocurrency was part of a securities offering that required certain disclosures that Kik has claimed weren’t…