Sparkster to pay $35M for selling unregistered crypto securities
By 
Jeff Dale2022-09-20T19:35:00
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.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
ArticleRegulation by enforcement does nobody any favors
To see a prominent representative from the CFTC accuse the SEC of “regulation by enforcement” might raise the eyebrow of some observers. But it shouldn’t—not when that’s the latter’s stated strategy.
-
ArticleCrypto regulation back in spotlight after SEC securities claims
The Securities and Exchange Commission’s move to classify nine cryptocurrencies as securities as part of insider trading charges it brought against a former Coinbase manager has touched a nerve with other regulators, particularly the Commodity Futures Trading Commission.
-
ArticleFormer Coinbase manager charged in first crypto insider trading case
The Department of Justice and Securities and Exchange Commission charged a former product manager at Coinbase with insider trading for allegedly passing on tips to his brother and friend regarding when certain cryptocurrency assets would be made available on the platform.
More from Regulatory Enforcement
-
ArticleSFO head to step down as speculation grows over future of agency
Nick Ephgrave, director of the U.K.’s main anti-corruption enforcement agency, the Serious Fraud Office, will retire at the end of March—about halfway through his appointed five-year term. Experts say he leaves the agency in a lot better position than he joined it in September 2023.
-
News BriefFTC puts GM’s puts connected vehicle data practices under compliance spotlight
The U.S. Federal Trade Commission finalized its order against General Motors and its OnStar subsidiary over the improper usage of geolocation and driving behavior data of drivers.
-
ArticleKaiser plans pay $556M to settle Medicare upcoding allegations
Kaiser Health affiliates have agreed to pay more than $556 million to settle allegations originally made by whistleblowers that they ignored compliance department warnings and unlawfully reworked diagnoses for Medicare patients in order to receive higher payments from the federal government.