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

Token Metrics CEO Ian Balina said Wednesday the SEC is expected to drop its case against him, ending a three-year legal battle over allegations he violated U.S. securities laws.

“It’s official: The SEC is dropping its case against me,” Balina tweeted. “This was never just about me—it’s about fairness in crypto.”

Balina’s charges stem from a September 2022 order alleging he failed to disclose compensation received while promoting the Sparkster (SPRK) initial coin offering.

Backing the CEO’s claim, Token Metrics tweeted Monday the charges had been “dropped,” adding that “a possible shift in enforcement trends” was underway.

It’s worth noting the SEC has yet to provide an official statement on the matter. The SEC and Balina did not immediately respond to Decrypt’s request for comment.

The SEC has also not officially updated the case’s status since September 2022, when it announced Sparkster and its CEO, Sajjad Daya, had settled for $35 million.

“This frivolous SEC charge sets a bad precedent for the entire crypto industry,” Balina said at the time. “If investing in a private sale with a discount is a crime, the entire crypto VC space is in trouble.”

The SEC’s complaint alleged Balina received a 30% bonus on his $5 million investment in SPRK tokens but never disclosed this consideration when promoting the tokens to his substantial social media following. 

In May 2024, a judge ruled SPRK tokens qualified as securities under the SEC’s purview.

If confirmed by the regulator, the dismissal would follow several recent SEC decisions to abandon cases against crypto companies since President Trump appointed Mark Uyeda as acting SEC Chair following Gary Gensler’s January departure.

So far, the SEC has dismissed a number of cases containing allegations of securities violations against crypto firms including Binance, Coinbase, OpenSea, Robinhood, Uniswap, Gemini, and Kraken, among others.

Edited by Sebastian Sinclair