Crypto firm Sparkster has made a deal with the U.S. Securities and Exchange Commission (SEC) over an “unregistered crypto asset offering” in 2018.
The firm and its CEO Sajjad Daya have agreed to pay more than $35 million in the settlement.
On Monday, the SEC issued a cease-and-desist order against both of them, claiming that they raised $30 million from 4,000 investors during the ICO of the SPRK tokens.
The SEC states that these tokens were not registered with the agency even though they were offered and sold as securities.
The settlement money received from Sparkster and its CEO will be put in a fund to be distributed to harmed investors.
Carolyn M. Welshhans, associate director of the SEC’s Division of Enforcement said, “The resolution with Sparkster and Daya allows the SEC to return a significant amount of money to investors and requires additional measures to protect investors, including the disabling of tokens to prevent their future sale.”
Moreover, Sparkster has 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.
Daya has agreed to not participate in offerings of crypto asset securities for five years.
A crypto influencer associated with this ICO, Ian Balina has also been charged by the SEC for promoting SPRK on his social media without disclosing that he would receive a 30% bonus on the $5 million in tokens he bought.
