Token Metrics CEO Ian Balina says the SEC is set to drop its case against him, bringing an end to a legal battle that has lasted over three years.
Originally, the SEC accused Balina for allegedly failing to disclose compensation while promoting the Sparkster (SPRK) initial coin offering (ICO) back in 2018.
“It’s official: The SEC is dropping its case against me,”
Balina tweeted, adding that the case was about fairness in crypto, not just about him.
Token Metrics also shared the news, hinting that the SEC may be changing its approach to crypto enforcement. However, the SEC has not not officially confirmed the dismissal
What Was Balina Accused Of?
The SEC’s complaint, filed in September 2022, alleged that Balina invested $5 million in tokens SPRK and received a 30% bonus for the investment. The issue is he did not disclose this bonus when promoting these tokens to his huge social following.
At the time, Balina had brushed off the charges, calling them “frivolous” and warning that if the SEC cracks down hard private sale discounts, the entire crypto venture capital industry could easily go south.
While the case against Balina continued, Sparkster and its CEO Sajjad Daya reached a settlement with SEC for $35 million in May 2024, showing that the regulators had at least partially won its legal fight. In May 2024, a judge ruled that SPRK tokens qualified as securities, strengthening the SEC’s case.
Is the SEC Changing Its Stance on Crypto?
If Balina’s claim is true, then that would add up to another recently abandoned lawsuit handed down by the SEC. Since Mark Uyeda replaced Gary Gensler as acting Chair of SEC in January, the regulator has dropped cases against big crypto firms like Binance, Coinbase, OpenSea, Robinhood, Uniswap, Gemini, and Kraken.
For now, the crypto industry is just waiting to hear from the SEC. If confirmed, this might indicate a big change coming on how they handle regulation down the line.
