Tr?id=566623520170033&ev=PageView&noscript=1

Sparkster Ordered to Pay $35 Million Over Unregistered Crypto Asset Offering

Posted on October 5th, 2022 at 1:06 PM
Sparkster Ordered to Pay $35 Million Over Unregistered Crypto Asset Offering

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has issued a cease-and-desist order against Sparkster and its CEO, Sajjad Daya, over an unregistered crypto asset offering that spanned from April 2018 through July 2018.

The SEC additionally charged crypto influencer Ian Balina for failing to disclose compensation he collected from Sparkster for promoting the offering. Sparkster and Daya agreed to a settlement with the SEC to pay at least $35 million into a fund for distribution to harmed investors. According to the SEC, Sparkster and Daya raised $30 million from at least 4,000 investors by selling crypto asset securities, known as SPRK tokens, to fund the development of Sparkster’s “no-code” software platform. Sparkster and Daya informed investors that SPRK tokens would increase in value and that they would make the tokens available on a crypto trading platform, according to the SEC’s order. The SEC also determined that Sparkster failed to register the SPRK tokens with the SEC, and that a registration exemption did not apply in this case.

Furthermore, while Balina purchased $5 million worth of SPRK tokens and subsequently promoted the tokens on YouTube, Telegram and other social media outlets between May 2018 and July 2018, the SEC alleged that Balina failed to disclose that Sparkster had agreed to pay him a 30% bonus on the tokens that he purchased, which constituted compensation for his promotional scheme.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, crypto

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

1787070589 Law
August 18, 2026
Senior Protection Case Study: Edward Jones and Senior Investor Safeguards

A recent incident involving Edward Jones illustrates how challenging it may be to employ safeguards for protecting older clients from financial exploitation.

1786980584 Law
August 17, 2026
Federal Judge Allows Investor Class Action Over Lightstone REIT Disclosures to Proceed

A federal judge has allowed investors to proceed with a class-action lawsuit alleging that directors and advisors of three Lightstone Value Plus REITs failed to disclose a significant conflict of interest before shareholders voted on amendments extending the funds' operating periods.

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.