The SEC sues influencer, Ian Balina, for holding a “KOL” round and alleging that he offered and promoted unregistered securities called SPRK Tokens. The court finds that Balina’s broader challenge to domesticity fails and sections 5(a), 5(c), and 17(b) of the Securities Act apply to Balina’s conduct. The court held that Balina violated sections 5(a) and 5(c) as a matter of law and denies Defendant’s motion for summary judgment on section 17(b).
Unlike other touting cases, this influencer actually purchased his tokens from the issuer, but at a 30% discount. At trial, the issue will be whether this arrangement requires disclosure under anti-touting rules. This case also has an extraterritorial element.
1:22-cv-00950
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