SEC Orders Sparkster To Pay $35 Million To Harmed Investors For Unregistered 2018 ICO
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Sparkster To Pay$35 Million To Harmed Investor Fund
According to the agency, the two were given a cease-and-desist order by the SEC on Monday. They are accused of soliciting 4,000 investors for $30 million by selling them "crypto asset securities known as SPRK tokens", said Carolyn M. Welshhans, associate director of the SEC's Division of Enforcement.
The agreement with Sparkster and Daya allows the SEC to restore a sizeable sum of money to investors and calls for extra steps to safeguard them, such as tokens being disabled to prevent further sales. The SEC said in the press release, "Without admitting or denying the SEC's findings, Sparkster agreed to destroy its remaining tokens, request the removal of its tokens from trading platforms, and publish the SEC's order on its website and social media channels,"
SEC Files Charges Against Ian Balina
Daya also consented to refrain from participating in any five-year securities offerings involving cryptographic assets. In this case, the SEC also filed charges against YouTuber and cryptocurrency investor Ian Balina for his participation. The SEC said that Balina advertised SPRK on social media without revealing that he would receive a 30% bonus on the $5 million worth of tokens he purchased. Sparkster and Daya broke the Securities Act of 1933's offering registration provisions.