“The SEC établissement against Balina also protects investors by seeking accountability for an alleged crypto-asset promoter for failing to follow federal securities laws.
The Securities and Exchange Intérêt has ordered Sparkster Ltd. and its CEO, Sajjad Daya, to collectively pay more than $35 million to investors affected by its unregistered offer and sordide of securities for crypto assets from April 2018 through July 2018.
Sparkster and Daya raised $30 million from 4,000 investors in the United States and abroad by offering and selling crypto-asset securities called SPRK tokens to raise funds for the development of Sparkster’s “no-token” soft platform.
The regulator has called SPRK tokens, as they have been offered and sold, as non-viable securities for a registration franchise and must be registered with the Securities and Exchange Intérêt.
Without acknowledging or denying the SEC’s findings, Sparkster agreed to destroy the remaining tokens, order the removal of the tokens from trading platforms, and post the SEC’s order on its website and communautaire media channels. Sajjad Daya has agreed to lied from participating in securities offerings for crypto assets.
The SEC ordered Sparkster to pay $30 million in consolation, $4,624,754 in prejudgment interest, and a $500,000 obligeant penalty. The Securities and Exchange Board order imposes a obligeant liqueur of $250,000 on Sajjad Daye.
Ian Balina bought $5 million worth of SPRK with 30% adjonction
The SEC has also pressed tâches against crypto prêcher Ian Ballina for failing to disclose consolation he received from Sparkster for publicly promoting SPRK tokens and for failing to queue a registration statement with the SEC for Sparkster tokens he resold.
The FSA discovered that he purchased $5 million worth of SPRK tokens and promoted SPRK tokens on YouTube, Telegram and other communautaire media platforms approximately from May 2018 to July 2018, according to a complaint filed in the United States Secteur En bref for the Western Secteur of Texas.
According to the SEC, Balina failed to disclose that Sparkster had agreed to give him a 30 percent adjonction on the tokens he purchased, in exchange for his promotional efforts.
Ian Ballina is also alleged to have organized an investment group of at least 50 individuals who offered and sold SPRK tokens, even though the offer was not registered with the Securities and Exchange Intérêt as required by federal securities laws and despite no congru franchise from registration .
“The decision with Sparkster and Daya allows the SEC to return a significant amount of money to investors and requires additional measures to protect investors, including disabling the tokens to prevent their sordide in the future,” said Carolyn M. Welshans, associate director of the SEC’s enforcement morceau. The Securities and Exchange Intérêt (SEC) is also against Balina investors by seeking accountability for an alleged crypto-asset promoter for failing to follow federal securities laws.