The Securities and Exchange Commission (SEC) has posted that it has obtained a final judgment against defendants Ryan Felton, FLiK, and CoinSpark. The SEC had previously charged the defendants in 2020 for two initial coin offerings (ICOs) that were deemed to be fraudulent.
Felton, FLiK, and CoinSpark have consented to the entry of a final judgment.
The SEC’s complaint alleged that Felton had promised to build a digital streaming platform for FLiK, and a digital asset trading platform for CoinSpark. The complaint states that Felton allegedly misappropriated the funds raised in the ICOs. The allegations include claims that Felton transferred FLiK tokens to himself and sold them into the market, and engaging in manipulative trading to inflate the price of SPARK tokens.
Felton allegedly used the funds to buy a Ferrari, a million-dollar home, diamond jewelry, and other luxury goods.
The final judgment includes the barring of Felton from acting as an officer or director of a public company and ordering the disgorgement of $2.8 million, plus prejudgment interest of $704,981.