SEC Points Its Sword of Justice at Crypto Influencers

SEC-Points-Its-Sword-of-Justice-at-Crypto-Influencers
  • The SEC has begun to hold crypto influencers accountable.
  • The regulator has filed a lawsuit against Ian Ballina.
  • Ballina promoted SPRK tokens on social media without revealing his incentive from them.

The SEC sets its sights on Crypto Influencers and holds them accountable for promoting failed projects. In detail, the SEC is charging crypto influencer — Ian Ballina, for an Initial Coin Offering (ICO) in 2018. 

It seems the United States Securities Exchange Commission (SEC) is holding more than tokens and companies accountable. Specifically, the SEC is charging Ballina for promoting a token on social media and not mentioning the incentive he received to promote it. 

To highlight, the SEC has placed a lawsuit on the popular and well-known crypto influencer, entrepreneur, and investor. The filing of the lawsuit states that Ballina promoted a token on social media but did not say he did so due to an incentive. 

In particular, the token in question is SPRK tokens from Sparkster Ltd. Ballina is being accused of purchasing $5 million worth of SPRK tokens from Sparkster Ltd. In addition, he also allegedly received 30% bonus tokens before he even began to promote the token on social media. 

The conflict comes from the fact that Ballina failed to disclose this incentive from Sparkster Ltd when he went on to promote the SPRK token on social media. Thus, the SEC charged him in its lawsuit in the federal court of Austin, Texas.  

This incident led to a discussion on the CryptoCurrency thread on Reddit. In this thread the crypto community talks about how it is a great move from the SEC to hold crypto influencers accountable.

So far, the SEC has been on a warpath, mostly with cryptocurrencies and tokens. The most prominent battle was between the SEC and Ripple. This is why the Reddit user mentions how nice it is to see a change of pace with the SEC. 

In fact, they go on to say that the move of holding a crypto influencer accountable should be praised. The responses to the post show a chorus of affirmations from other Reddit users who feel the same. So much so, that some even began to name other crypto influencers they’d like to see behind bars.  

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