Although crypto is regarded as a decentralized platform where everyone can do his business without the interference of the state. On the surface, it is a promising platform for young investors, but when you dig deeper, you will find that it is not that simple. The Sparkster and other similar coins bogus sell out has shown the other face of this platform. They manage to plunder more than 4000 investors to give tokens.
They were promised to have pre-sale tokens at very lower prices, and later, the investors would be able to sell these tokens at high prices. Sparkster’s owner, Sajjad Daya, and self-proclaimed Youtube influencer Ian Balina take away more than 35 million dollars from American and abroad investors. But the question is what Sparkster in the first place is.
What is Sparkster?
The project was started in mid-2018 with the promise of no-code software technology. The owner started advertising the initial token between July and August 2018. The project was initiated in such a way that it would give pre-sale tokens to the initial investors, which they can sell after the token’s launch. The advertisement was begun on YouTube, Facebook, Twitter, and other social media account.
Investors took it seriously; more than 4000 investors invested more than 30 million dollars. That’s quite some the money. However, it happened to be a fraud, and the investors never received a single penny. Now there is some hope of a ray for Sparster investors after the court charged Ian Balina for Promoting Unregistered ICOs. But who is Ian Balina?
Who is Ian Balina?
Ian Balina was social media promoter for the token, and he was a self-proclaimed influencer. He promoted the Sparkster token between April and July 2018. Additionally, he signed a deal with Sparkster and did not show his compensation to the court. Furthermore, he does not provide a registration statement with the SEC for Sparkster tokens that he resold. Not only he but Sparkster Ltd. and its CEO, Sajjad Daya, were pursued by the Securities and Exchange Commission America.
What is the allegation against them by The Securities and Exchange Commission America?
The first allegation is against Sparkster and Daya, which is that they told the Sparkster tokens would increase in value, the team would promote the tokens more and more, and the team would soon launch the token on a credible crypto exchange. They did none of these.
On the other hand, The Securities and Exchange Commission America alleged Ian Balina that he promoted the token on YouTube, Telegram, and other social media platforms from approximately May 2018 to July 2018. Additionally, he purchased 5 million dollars worth of tokens at a 30% lower rate because of his promotional activities. Later Balina tried his own investing pole, where he sold his token to 50 individuals. These are serious allegations and they are yet to be proved against Balina.
They both are charged based on the security breach because neither of them filed any application for this token distribution with the commission.
Any hope for Sparkster investors?
Yes, there is a ray of hope for those 4000 investors who lose their money in this fake token ICO. If the court takes the whole money from both the owner and Ian Bilana, which is calculated to be more than 300 million dollars in today’s money and distributes it among the investors. That would be a great relief for them. It is the only hope the investors see from this case.
These so-called YouTube influencers and investors have harmed the whole crypto market. They take the money of those serious investors willing to invest in the crypto platforms. After such accidents, these investors never return to the crypto market again, which is a blow to the overall market. Even one investor should not be lost in the crypto market because it affects the whole market.
The case against Sparkster and Bilana would give more security to the system and investors. Let’s see what happens next.