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SEC Orders Crypto Firms To Pay $35 Million To Affected Investors — Indicts Influencer Ian Ballina – Regulation Bitcoin News

The U.S. Securities and Exchange Commission (SEC) has ordered cryptocurrency company Sparkster and its CEO to pay $35 million to a fund for distribution to affected investors. Securities regulators have also indicted crypto influencer Ian Ballina for promoting cryptocurrencies without disclosing the compensation he received.

SEC Suspension Order Against Unregistered Crypto Company

The U.S. Securities and Exchange Commission (SEC) on Monday issued a statement to Sparkster Ltd. and its CEO Sajjad Daya that it had “suspended all unregistered offers and sales of cryptocurrency securities from April 2018 to July 2018. I have issued an order,” he said. ”

The SEC explained that to raise funds to develop Sparkster’s software platform “by offering and selling cryptocurrency securities called SPRK tokens.”

Sparkster and Daya have raised $30 million from 4,000 US and international investors.

They told investors that the SPRK token would increase in value and promised to make the token available on crypto trading platforms.

In its settlement with the SEC, Sparkster has agreed to destroy its remaining crypto tokens, request the removal of the tokens from its trading platform, and publish the SEC’s order on its website and social media channels. Daya has agreed that he will refrain from participating in offerings of cryptocurrency securities for five years.

SEC Details:

Sparkster and Daya settled and agreed to jointly pay more than $35 million in funds to be distributed to affected investors.

SEC indicts crypto influencer Ian Ballina

“Cryptocurrency influencer Ian Ballina filed a registration statement for resold Sparkstar tokens, failing to disclose compensation received from Sparkstar for publicly promoting Sparkstar tokens,” the securities regulator said Monday. We have filed suit for failing to file with the SEC.”

The SEC explained that Ballina purchased $5 million worth of SPRK cryptographic tokens and promoted them on Youtube, Telegram, and other social media platforms from May to July 2018.

Ballina allegedly failed to disclose that he had agreed to offer a 30% bonus on tokens purchased by Sparkstar in return for promotional activities.

Crypto influencers have also allegedly organized investment pools of at least 50 individuals to offer and sell unregistered tokens, the securities regulator notes.

Ballina has been charged with violating the offering registration provisions of the Securities Act, detailing which the SEC added, “seeking injunctive relief, discovery and prejudgment benefits, and civil penalties.”

In response to the SEC’s announcement, Ballina tweeted: This frivolous SEC charge sets a bad precedent for the crypto industry as a whole. If investing in discounted private sales is a crime, the entire cryptocurrency VC space is at stake. Having refused the settlement, they must prove themselves. ”

Tags for this story

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What are your thoughts on the SEC’s action against Sparkster and crypto influencer Ian Ballina? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin has been an evangelist since he discovered Bitcoin in 2011. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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SEC Orders Crypto Firms To Pay $35 Million To Affected Investors — Indicts Influencer Ian Ballina – Regulation Bitcoin News

Source link SEC Orders Crypto Firms To Pay $35 Million To Affected Investors — Indicts Influencer Ian Ballina – Regulation Bitcoin News

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