Sparkster to pay $35M for selling unregistered crypto securities

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Software development company Sparkster and its Chief Executive Officer Sajjad Daya agreed to collectively pay more than $35 million and consent to a cease-and-desist order for the offer and sale of unregistered crypto securities, the Securities and Exchange Commission (SEC) announced Monday.

From April 2018 to July 2018, Sparkster and Daya conducted an unregistered securities offering of cryptocurrency tokens, raising $30 million from 4,000 investors from the United States and abroad, the SEC alleged in its order.

Without admitting or denying wrongdoing, Sparkster agreed to destroy its remaining tokens; request the removal of its tokens from trading platforms; and pay $30 million in disgorgement, approximately $4.6 million in prejudgment interest, and a $500,000 civil penalty.

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