SEC Charges Crypto Influencer for Promoting Unregistered ICO

Sparkster, a project that promised a “no-code” software creation platform, raised over $30 million from its initial coin offering in July 2018

article-image

Source: DALL·E

share

key takeaways

  • Influencer and crypto promoter Ian Balina latest to be targeted by the SEC
  • According to the SEC, Balina agreed to invest around $5 million in the Sparkster offering and promote the offered SPRK tokens on YouTube, Telegram and other social media platforms

The US Securities and Exchange Commission has charged self-described crypto influencer Ian Balina for actions related to the offering and promotion of SPRK tokens, according to a court filing released Monday. 

Balina, who promoted SPRK tokens in 2018, failed to disclose to investors that he was compensated by the issuer, the SEC alleges in the suit. He also “failed to file a registration statement with the SEC for the tokens that he re-sold using an investing pool that he organized,” the filing states. 

Sparkster, a project that promised a “no-code” software creation platform, raised over $30 million from its initial coin offering in July 2018. After raising the funds, the project never materialized, as far as investors were concerned. In May 2022, Sparkster appeared in headlines again after the otherwise dormant blockchain appeared to convert $22 million in ether into USDC. 

According to the SEC, Balina agreed to invest around $5 million in the Sparkster offering and promote the offered SPRK tokens on YouTube, Telegram and other social media platforms. Balina’s agreement also came with a 30% bonus from Sparkster on the tokens he purchased in the Sparkster offering, but Balina never publicly disclosed the commission he received for his promotion, the SEC alleges. 

The court filing comes as fallout from the popular ICO days of 2018 continues to persist in the crypto industry. 

The SEC sued settlement system Ripple and two executives — founder Christian Larsen and CEO Brad Garlinghouse — about two years ago over allegations that its XRP token was an unregistered security offering. Ripple disputed the allegations and claimed XRP should be treated as virtual currency, not a security. If both parties get their way, the legal battle will be determined by a federal judge in a summary judgment.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

recent research

Research Report Templates.png

Research

An overview of the Base Ecosystem, with a focus on market leaders.

article-image

Although bitcoin hitting $120k by year’s end is looking unlikely

article-image

About 270 million HYPE has been claimed, valued around $7.6 billion

article-image

Stanford professors David Mazières and Dan Boneh will lead the lab alongside a cohort of graduate student researchers

article-image

With more companies holding BTC, bitcoin yielding strategies could become “a new corporate finance norm,” CoinShares posed

article-image

The proposal comes after Polygon governance considered a controversial use of bridged liquidity for yield

article-image

Can the community balance its decentralized ethos with the need for inclusivity and constructive debate?