In the Matter of Sparkster, Ltd. And Sajjad Daya

Admin. Proc. File No. 3-21103

On September 19, 2022, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Sparkster, Ltd. (“Sparkster”) and Sajjad Daya (“Daya”), its founder (collectively the “Respondents”). In the Order, the Commission found that, from April 2018 to July 2018, the Respondents raised approximately $30 million from nearly 4,000 investors based on the unregistered securities offering of crypto asset securities called “SPRK tokens.” The Commission found Respondents violated Sections 5(a) and 5(c) of the Securities Act for failing to file a registration statement as to the offering of SPRK tokens, and sold SPRK tokens to thousands of purchasers, including persons throughout the United States and foreign persons, and Respondents made use of interstate commerce in promoting the unregistered offering and in effectuating the sale of SPRK tokens. Furthermore, Respondents did not purport to conduct the offering pursuant to any registration exemptions or qualifying for an exemption from registration. The Commission ordered the Respondents to pay a total of $35,374,754.23 in disgorgement, prejudgment interest, and civil money penalties. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties, along with the disgorgement and prejudgment interest, collected could be distributed to those harmed by the Respondents conduct described in the Order (the “Fair Fund”). See the Commission’s Order: Release No. 33-11102.

On January 29, 2024, the Commission issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-99441.

On April 11, 2024 the Commission issued an order appointing Epiq Class Action & Claims Solutions, Inc. (“Epiq”), as the Fund Administrator to oversee the administration and distribution of the Fair Fund and, set the administrator’s bond amount. The Commission further authorized the Commission Staff to approve and pay the Fund Administrator’s invoices from the Fair Fund. See the Commission’s Order: Release No. 34-99942.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov