Token Metrics CEO Ian Balina Says SEC to Drop Its Case Against Him

Token Metrics CEO Ian Balina stated Wednesday the SEC is predicted to drop its case in opposition to him, ending a three-year authorized battle over allegations he violated U.S. securities legal guidelines.

“It’s official: The SEC is dropping its case in opposition to me,” Balina tweeted. “This was by no means nearly me—it’s about equity in crypto.”

Balina’s costs stem from a September 2022 order alleging he did not disclose compensation obtained whereas selling the Sparkster (SPRK) preliminary coin providing.

Backing the CEO’s declare, Token Metrics tweeted Monday the fees had been “dropped,” including that “a potential shift in enforcement tendencies” was underway.

It is price noting the SEC has but to supply an official assertion on the matter. The SEC and Balina didn’t instantly reply to Decrypt’s request for remark.

The SEC has additionally not formally up to date the case’s standing since September 2022, when it introduced Sparkster and its CEO, Sajjad Daya, had settled for $35 million.

“This frivolous SEC cost units a nasty precedent for your complete crypto trade,” Balina stated on the time. “If investing in a personal sale with a reduction is against the law, your complete crypto VC area is in bother.”

The SEC’s grievance alleged Balina obtained a 30% bonus on his $5 million funding in SPRK tokens however by no means disclosed this consideration when selling the tokens to his substantial social media following. 

In Might 2024, a decide ruled SPRK tokens certified as securities below the SEC’s purview.

If confirmed by the regulator, the dismissal would observe a number of latest SEC choices to desert circumstances in opposition to crypto firms since President Trump appointed Mark Uyeda as performing SEC Chair following Gary Gensler’s January departure.

Thus far, the SEC has dismissed a number of cases containing allegations of securities violations in opposition to crypto corporations together with Binance, Coinbase, OpenSea, Robinhood, Uniswap, Gemini, and Kraken, amongst others.

Edited by Sebastian Sinclair