Sparkster Agreed With The SEC To Repay $35 Million To Investors

Sparkster will pay back $35 million to investors who suffered losses from the ICO held in 2018.

Sparkster, who agreed with YouTuber Ian Balina to promote his token named SPRK, reached an agreement with the SEC.

Sparkster Signs With SEC

Cayman Islands-based software company Sparkster and CEO Sajjad Daya were indicted by the US Securities and Exchange Commission for an unregistered initial coin offering (ICO) in 2018. The parties have reached an agreement.

The ICO raised approximately $30 million from 4000 investors between April 2018 and July 2018. The company promised that the funds it raised were raised to help Sparkster develop its “no code” software platform for children, and that the tokens would be appreciated in the future.

The SEC made the move today, and the company has agreed to pay back $35 million to investors who suffered losses from the SPRK ICO.

In addition to $30 million in damages, Sparkster will pay a $4.6 million pre-judgment and $500,000 fine. In addition, the company has also agreed to destroy the remaining tokens by removing them from their trading platforms. Additionally, the company’s CEO, Daya, will also not pay a $250,000 penalty.

Daya admitted to the charges in a blog post on Medium today.

Similarly, charges were filed against Ian Balina today, who promised to make millions from the SPRK token. Whale did not disclose to investors how much he was paid to advertise the ICO. The SEC also claimed that Balina also made an unregistered sale of SPRK tokens purchased prior to the ICO and violated the law.

In a statement on his Twitter account, Balina noted that the SEC’s accusations were frivolous and set a bad precedent for the entire crypto industry. In addition, Whale said the SEC refused to negotiate.