BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home BUSINESS

Sparkster to Pay $35 Million to Harmed Investor Fund for Unregistered Crypto Asset Offering

by BlockNews Team
September 24, 2022
in BUSINESS, CRYPTO, MEDIA, SOCIAL
Reading Time: 3 mins read
A A
1
SHARES
18
VIEWS
Share on XShare in TelegramShare on Reddit

The SEC filed charges against popular crypto Youtuber Ian Balina from Token Metrics for failing to disclose payments he received from Sparkster in exchange for publicly advocating its tokens and for failing to submit a registration statement with the SEC for Sparkster coins he resold. Both Sparkster and Daya agreed to a settlement and paid over $35 million to a fund that would be used to compensate affected investors.

SEC’s Complaint

A cease-and-desist order was issued on 19 September 2022 by the Securities and Exchange Commission (SEC) against Sparkster Ltd. and its CEO, Sajjad Daya, for the unregistered offering and sale of securities backed by cryptocurrencies from April 2018 through July 2018. The SEC further requested injunctive relief, disgorgement plus prejudgment interest, and civil penalties against Mr. Balina.

According to the SEC’s complaint, Sparkster and Daya generated $30 million from 4,000 investors in the US and internationally through the promotion and sale of SPRK tokens, which are crypto asset securities. This money was used to fund the growth of Sparkster’s “no-code” software platform. Mr. Balina purchased $5 million worth of SPRK tokens between May and July 2018 and touted the purchases across his social media platforms, encouraging other investors to buy tokens.

The court found that Sparkster and Daya made promises to investors about the value of SPRK tokens increasing, the management of Sparkster continuing to make changes, and the availability of the tokens on a cryptocurrency trading platform. The order further finds that the SPRK tokens were securities in the form in which they were offered and traded, that they had not been registered with the SEC, and that they were not excluded from registration.

Authorities’ Views

The SEC can return a sizable sum of money to investors thanks to the resolution with Sparkster and Daya, according to Carolyn M. Welshhans, Associate Director of the SEC’s Division of Enforcement: “The resolution with Sparkster and Daya requires additional measures to protect investors, including the disabling of tokens to prevent their future sale.” The SEC’s complaint against Balina seeks to hold an alleged promoter of bitcoin assets accountable for violating federal securities laws, further protecting investors.

Reaching a Ruling and Settlement

The SEC ruled that Sections 5(a) and 5(c) of the Securities Act of 1933’s offering registration provisions were broken by Sparkster and Daya. Without admitting or opposing the SEC’s charges, Sparkster agreed to destroy its remaining tokens, request their removal from trading platforms, and announce the SEC’s order on its website and social media channels. Daya voluntarily agreed to postpone participating in offerings of crypto asset securities for five years without disputing or acknowledging the SEC’s findings. The SEC requests payment from Sparkster in the amounts of $30 million in disgorgement, $4,624,754 in prejudgment interest, and $500,000 in civil penalties. Daya will pay a $250,000 fine under the SEC’s order, which he will challenge.

Tags: BlockchaincryptoWeb3
TweetShareShare
Previous Post

The Vulnerability of Blockchain at Play: Major Crypto Trading Firm, Wintermute Report Loss of $160M in Hacking Incident

Next Post

Tether (USDT) Agrees To Give Court Requested Documents After an Initial Decline

DON'T MISS THESE! HOT OFF THE PRESS

Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL
BITCOIN

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules
CRYPTO

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Connecticut Bans Bitcoin and Crypto for Government Funds
BITCOIN

Connecticut Bans Bitcoin and Crypto for Government Funds

July 1, 2025
Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme
CRYPTO

Shiba Inu: Turning $3,000 into $10,000 – The Math Behind the Meme

July 1, 2025
FARTCOIN Surges 148%—Is the Meme Just the Beginning?
CRYPTO

FARTCOIN Surges 148%—Is the Meme Just the Beginning?

July 1, 2025
Load More

Related News

Toncoin and Telegram: The Sleeping Giant of 2025?

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Donald Trump Threatens Elon Musk with DOGE Audit

Donald Trump Threatens Elon Musk with DOGE Audit

July 1, 2025
Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

Jerome Powell Says July May be Too Early for Rate Cuts, But Doesn’t Rule it Out

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.