To:

The United States Securities and Exchange Commission (SEC)

Subject:

Petition for a Timely and Fair Resolution for Sparkster ($SPRK) Token Holders

We, the undersigned members of the Sparkster community, respectfully submit this petition to the United States Securities and Exchange Commission (SEC) via Change.org, seeking decisive and equitable action to resolve the prolonged and challenging situation faced by Sparkster ($SPRK) token holders. In light of ongoing regulatory developments and the significant uncertainty endured by our community, we appeal for a fair and timely resolution—either through the compliant relaunch of the Sparkster platform and reinstatement of token trading, or through the recovery and redistribution of remaining project funds to SPRK holders.

 
PROJECT BACKGROUND

1. Sparkster ICO and Vision:

In July 2018, Sparkster completed its Initial Coin Offering (ICO), raising $30 million in ETH. The project’s mission was to democratize software creation.

2. SEC Investigation:

In 2019, an SEC investigation into Sparkster led to significant obstacles for the project, preventing further development and restricting the community’s ability to benefit from their token holdings.

3. Administrative Settlement:

In 2022, Sparkster entered into an administrative settlement with the SEC (Order: Release No. 33-11102), agreeing to a $35 million settlement and a cease-and-desist order. This order halted all token trading and project advancement, deeply impacting the community.

4. Ongoing Commitment: 

Despite these regulatory setbacks, the Sparkster team has continued to demonstrate intent to develop the platform for community benefit.

5. Financial Transparency:

Currently, the project retains approximately 12,500 ETH (valued at ~$33 million)—funds that are on-chain and in excess of the agreed SEC settlement. However, the current regulatory status of these funds is unclear, leaving token holders without access or recourse.

 
OUR REQUEST FOR RESOLUTION

We respectfully request that the SEC urgently provide a clear path forward for SPRK token holders. Our proposals are as follows (please consider Proposal 2 only if Proposal 1 cannot be fulfilled):

Proposal 1:

Permit the compliant relaunch of the Sparkster platform, subject to all applicable regulatory requirements, and reinstate $SPRK token trading. Additionally, we respectfully request consideration of reinstating Sajjad Daya as CEO, if deemed appropriate, in recognition of the project’s ongoing good faith efforts and the evolving regulatory landscape

Proposal 2:

If a compliant relaunch is not possible, please recover 12,500 ETH in project funds and do a buyback for the benefit of SPRK token holders. This request is based on multiple public commitments made by Sajjad Daya to conduct a buyback and would provide long-overdue relief to the community.

RATIONALE

For Proposal 1:

Documented SEC Commission Support:

In 2022, SEC Commissioners Hester M. Peirce and Mark T. Uyeda publicly opposed the enforcement action against Sparkster (see SEC votes), signaling support for a more constructive regulatory approach.

Evolving Regulatory Landscape:

The SEC’s recent dismissal of the lawsuit against Ian Balina related to the Sparkster ICO (Cointelegraph article) reflects a shift toward more nuanced interpretations regarding utility tokens and regulatory settlements.

For Proposal 2:

Buyback Commitments:

Sajjad Daya has made multiple public commitments to buy back SPRK tokens from the community (Announcement 1​, Announcement 2), which were instrumental in maintaining community trust.
On-Chain Transparency:

The remaining funds are publicly verifiable on Etherscan (blockchain explorer) :

0x0c295c085cae9c6278df49477d29f71d78c5490d​

0x035d3ba0dd04fb61480a83d388541e6c18374369​

0x3cf565f5ac331afec57daef46ae7170569de7364​

0xf33f21a189744751a9482c3b2557ecea229b22e9​

0x27f78970a8be5b33ee866d0f31f7e1d7e383ac6f​

0x8464ac68bca6f2ce5ed8aba8dd3c62affb98f0aa

Fairness and Investor Protection:

Both a buyback or a refund solution would ensure equitable outcomes for token holders whose assets and aspirations have been locked for over seven years.
 
OUR COMMUNITY CALL
After seven years of uncertainty and hardship, the Sparkster community stands united in respectfully urging the SEC to consider the unique circumstances of our case and to act with fairness and empathy. We seek your leadership in delivering long-overdue closure, whether through enabling a compliant project relaunch or facilitating a fair buyback for token holders.

We earnestly call upon your attention to recognize the urgency of our situation and take decisive and empathetic action. We urge a fair resolution that could either enable a compliant relaunch of Sparkster, allowing us to restore trading rights to our token holders, or orchestrate a recovery plan that honors the investments made by our community. The impact on our community is profound, affecting not just financial standings but the trust in innovative tech ventures themselves.

Respectfully submitted,
The Sparkster Community
https://t.me/SPRKproject

Your signature on this petition is not just a cry for regulatory action; it's a stance of solidarity with a community striving for resolution. Join us in our appeal for the SEC to facilitate a conclusive and just outcome for Sparkster, ensuring the integrity and trust within the cryptocurrency ecosystem is maintained. Please sign this petition to urge the SEC to help us find a resolution in this matter.