SEC Drops Securities Case against Crypto Influencer Ian Balina

• The SEC has officially dismissed the case against Ian Balina.
• SPRK tokens were ruled securities, but no further action was pursued.
• SEC appears to be stepping back from multiple crypto lawsuits.

In a significant development, the U.S. Securities and Exchange Commission (SEC) has moved to dismiss its long-standing unregistered securities lawsuit against cryptocurrency influencer and Token Metrics CEO Ian Balina.

According to a joint stipulation filed on May 1 in a Texas federal court, the SEC requested that the case be dropped “without costs or fees to either side.” Although the Commission did not specify the reasons regarding the dismissal of the case. The report explained that the dismissal “does not necessarily reflect the Commission’s position on any other case.”

Balina, who was one of the lead players in 2017’s ICO boom, previously suggested the lawsuit was about to conclude. In a March posting on X, he informed his fans: “It’s official.” He presented the action as a victory for fairness and transparency in the crypto industry.

Background of the SEC Case

The SEC initially brought the complaint in 2022, claiming that Balina sold and marketed SPRK tokens, associated with the Sparkster project, without registration. At the core of the dispute was a Telegram-based investing pool Balina organised in 2018, where he allegedly resold $5 million worth of tokens to around 68 individuals.

The court had sided with the SEC on multiple counts, including ruling that SPRK tokens qualified as securities under the Howey Test. Balina was also accused of acting as an unregistered underwriter and failing to disclose compensation for promotion, violating Section 17(b).

While Sparkster and its CEO previously settled with the SEC for $35 million, Balina continued to fight the charges until this recent dismissal.

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