The SEC also charged crypto influencer Ian Balina for his involvement with the scheme. He allegedly accepted a 30% bonus on the $5 million worth of SPRK tokens he purchased in an agreement to promote the project on YouTube, Telegram, and other channels, but did not disclose his compensation. He also organized an investing pool with more than 50 investors, and also didn't register it with the SEC. Balina had advertised that he could help people "make millions with initial coin offerings".
Sparkster settles for $35 million with the SEC; SEC charges crypto influencer
The firm Sparkster and its CEO Sajjad Daya settled with the U.S. SEC after a cease-and-desist arguing that Sparkster sold securities worth at least $30 million without registration. The firm and Daya agreed to settle with the SEC, and will pay more than $35 million to a fund that will be distributed to the investors who were harmed.
- "Sparkster to Pay $35 Million to Harmed Investor Fund for Unregistered Crypto Asset Offering", U.S. Securities and Exchange Commission
- U.S. SEC v. Ian Balina