Crypto promoter Ian Balina has described SEC charges against him as ‘frivolous’ and stated he is “excited to take this fight public.” As, US Securities and Exchange Commission charged the cryptocurrency promoter with violating federal securities law On September 19.
Excited to take this fight public.
This frivolous SEC charge sets a bad precedent for the entire crypto industry.
If investing in a private sale with a discount is a crime, the entire crypto VC space is in trouble.
Turned down settlement so they have to prove themselves. 💯 pic.twitter.com/lVaqnnsLgT
— Ian Balina (@DiaryofaMadeMan) September 19, 2022
The US Securities and Exchange Commission (SEC) stated in a complaint filed in the Western District of Texas’ Austin Division that Balina promoted an unregistered securities offering for SPRK tokens between April and July of 2018, and failed to disclose that he was paid by the Cayman Islands-based issuer, Sparkster Ltd., to do so.
Balina is also accused of violating the Securities Act by forming a Telegram investment pool to resell his own SPRK tokens, thereby conducting “his own unregistered offering of SPRK tokens.”
He also stated that he had “turned down settlement” with the Commission. The SEC announced today that Sparkster and its CEO, Sajjad Daya, had agreed to settle and pay $35 million to Sparkster investors.
The settlement “allows the SEC to return a significant amount of money to investors and requires additional measures to protect investors, including the disabling of tokens to prevent their future sale,” according to Carolyn M. Welshhans, associate director of the SEC’s enforcement division. Reactions to Balina She continued, “further protects investors by seeking to hold accountable an alleged promoter of crypto assets for failures to comply with the federal securities laws.
Ian Balina Crypto World Tour
During the 2017 to 2018 ICO boom, Balina promoted ICOs on his YouTube channel, “Diary of a Made Man,” and other social media platforms. In 2018, he organised the “Ian Balina Crypto World Tour,” which travelled from city to city and hosted pitch contests in which tech startups competed for the opportunity to be featured on Balina’s YouTube channel. On May 11, 2018, the Sparkster team met Balina and was featured on his channel during one of these pitch contests in Amsterdam. Balina then started promoting the SPRK offering on social media and his website.
While Balina was praising SPRK in public, the SEC claimed that he was secretly negotiating with the Sparkster team to buy SPRK tokens for resale worth $7,143 ether (ETH) (approximately $5 million at the time of sale) and that he received a 30% bonus in SPRK tokens for his promotion.
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