SEC

SEC Charges Ian Balina With Sale Of Unregistered Securities

  • The SEC has charged Ian Balina, a promoter of Initial Coin Offerings or ICOs with the sale of initially promoting and then reselling unregistered securities in 2018.
  • Balina promoted and resold Sparkster (SPRK) tokens without disclosing the compensation he had received for promoting the same, claims the financial regultor.
  • In 2018, the ICO promoter also organized the “Ian Balina Crypto World Tour” hosting pitch contests for startups and in one such contest, he met Sparkster.

The Securities and Exchange Commission (SEC) has charged Ian Balina, a promoter of Initial Coin Offerings or ICOs with the sale of initially promoting and then reselling unregistered securities in 2018.

As per the regulatory authority’s complaint, Balina promoted and resold Sparkster (SPRK) tokens without disclosing the compensation he had received for promoting the same. The ICO promoter, who is currently the CEO of Token Metrics, a crypto investment research company, received compensation from Sparkster Ltd. the SEC alleges. 

“Sparkster, Ltd. (“Sparkster”), a software development company incorporated in the Cayman Islands, and its Chief Executive Officer (“CEO”), conducted an unregistered securities offering (“Sparkster Offering”) of crypto asset securities called SPRK Tokens. This unregistered offering took place between April and July 2018, raising approximately $30 million from nearly 4,000 investors located abroad and in the United States,”  

said the SEC in the complaint.

The financial regular further claims that Balina agreed to take a 30% bonus from Sparkster on the tokens he purchased in the Sparkster Offering but was never found to publicly disclose the information. The SPRK tokens were promoted via Twitter, Telegram, YouTube, and other social media platforms. 

Interestingly, as per SEC’s complaint, the 33-year old formed an investing pool of 50 members including U.S. residents who would purchase the SPRK tokens from Balina in an early access model. 

Balina rose to popularity after publicizing a spreadsheet in 2017 which contained all the information about his investment. The spreadsheet was viewed by over a million users each month and this is what gave birth to the crypto investment research company, Token Metrics. In 2018, the ICO promoter also organized the “Ian Balina Crypto World Tour” wherein he went from place to place, hosting pitch contests where tech startups put forth their promising products. During one such contest, Balina and Sparkster met.  

“Defendant Balina, directly or indirectly, singly or in concert with others, made use of the means or instruments of transportation and communication in interstate commerce, or of the mails, in connection with the acts, transactions, pr actices, and courses of business alleged in this Complaint,”

the SEC said.
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Parth Dubey Verified

A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.

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