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SEC sues Cryptocurrency investor Ian Belina

SEC sues Cryptocurre

The SEC is suing Ian Balina, a well-known cryptocurrency investor and the creator of Token Metrics. 

The well-known crypto media figure allegedly promoted and offered "unregistered securities," according to the regulatory watchdog.

According to the lawsuit, Ian Balina advertised an unregistered security.

On Monday, the Securities and Exchange Commission submitted the complaint to the Western District of Texas United States District Court. The SEC claims in the complaint that Balina offered and promoted SPRK tokens, which it considers securities, without first registering for them.

The native coin of the blockchain-based Sparkster cloud network is SPRK. In its initial coin offering (ICO), the cryptocurrency firm raised an astounding $30M in 2018. Following Ian Balina's vigorous promotion of the asset, a number of investors boarded the SPRK train. Nevertheless, the token had a 90% drop, costing millions of dollars.

Following the fall, Balina was the target of criticism from resentful investors. This takes into account his presence in the area at that time. The SEC files a complaint against Balina four years later. The watchdog said that Balina concealed the payment he got for endorsing the asset.

The SEC requests that the cryptocurrency influencer return all SPRK-related gains.

The Securities Act of 1933 was violated by several of Balina's actions promoting SPRK, according to the SEC. If a judge does not impose legal limitations on him, Balina will continue to commit violations, claims the SEC. Additionally, the SEC claimed that Balina had been paid $5M to market the coin.

The SEC wants, among other things, that Balina forfeit all "ill-gotten gains" derived from SPRK promotion activities. In addition, the SEC requests that the court prohibit Balina from offering or selling any securities, including cryptocurrency assets.

When the SPRK token plummeted in 2018, Balina, who had used his considerable power to promote the token, admitted that he had also been duped. In 2019, investors sued Sparkster, and Ian Balina publicly announced that he would be joining the action.

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