The US Securities regulatory body filed a case against Ballina for his involvement in the SPRK token ICO and SPRK token issuer Sparkster.
On 19 September, The United States Securities and Exchange Commission (SEC) filed a complaint with the U.S. District Court. The complaint is indeed a legal action by the SEC agency against Ian Ballina.
Ian Balina is a crypto influencer and he was involved in the Initial Coin Offering (ICO) of the SPRK token in 2018.
According to the SEC agency, Balina’s involvement in the SPRK token was a violation of securities law because he promoted to sell the SPRK token, which was unregistered security.
The Securities regulatory body also claimed that Ballina never disclosed the amount he received from the SPRK token issuer, for his involvement in the project and also his holding of the SPRK token.
However, Ballina fully disclosed that he received a 30% discount on SPRK token buy but never disclosed the amount that he received from the token issuer team to promote the token.
As per filing details, SPRK token ICO collected $30 million worth of Ethereum coins from 4000 investors, which were from US and non-US countries.
At that time, SPRK token issuer company Sparkster claimed that the value of the token will increase in the future because collected funds will be used to develop a no-code platform for children.
SEC filings claimed that Sparkster failed to register its ICO project with the agency and also it violated securities law because the team defrauded innocent investors.
Now, Sparkster is ready to pay $35 million into a fund distributed to investors harmed by the SPRK ICO. Sparkster will pay $30 million in disgorgement, $4.6 million in prejudgement interest, and a $500,000 civil penalty. Daya will pay a $250,000 civil penalty and also will not participate in any kind of offerings of digital asset securities for the next 5 years.