SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* SDS CAPITAL GROUP SPC LTD (Last) (First) (Middle) 113 SOUTH CHURCH STREET P.O. BOX 1234GT (Street) GRAND CAYMAN E9 00000 (City) (State) (Zip)	2. Issuer Name and Ticker or Trading Symbol SAFLINK CORP [ SFLK ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) Director X 10% Owner Officer (give title below) Other (specify below)
	3. Date of Earliest Transaction (Month/Day/Year) 06/22/2005
	4. If Amendment, Date of Original Filed (Month/Day/Year)	6. Individual or Joint/Group Filing (Check Applicable Line) X Form filed by One Reporting Person Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock, $.01 par value per share	06/20/2005		X		92,000	D	$1.75	8,878,041	D
Common Stock, $.01 par value per share	06/20/2005		X		92,000	D	$1.75	8,878,041	I	By SDS Management, LLC(2)
Common Stock, $.01 par value per share	06/20/2005		X		92,000	D	$1.75	8,878,041	I	By Mr. Steven Derby(1)(3)
Common Stock, $.01 par value per share	06/20/2005		X		57,114	D	$1.7627	8,820,927	D
Common Stock, $.01 par value per share	06/20/2005		X		57,114	D	$1.7627	8,820,927	I	By SDS Management, LLC(2)
Common Stock, $.01 par value per share	06/20/2005		X		57,114	D	$1.7627	8,820,927	I	By Mr. Steven Derby(1)(3)
Common Stock, $.01 par value per share	06/21/2005		X		454,200	D	$1.61	8,366,727	D
Common Stock, $.01 par value per share	06/21/2005		X		454,200	D	$1.61	8,366,727	I	By SDS Management, LLC(2)
Common Stock, $.01 par value per share	06/21/2005		X		454,200	D	$1.61	8,366,727	I	By Mr. Steven Derby(1)(3)
Common Stock, $.01 par value per share	06/21/2005		X		184,000	D	$1.6712	8,182,727	D
Common Stock, $.01 par value per share	06/21/2005		X		184,000	D	$1.6712	8,182,727	I	By SDS Management, LLC(2)
Common Stock, $.01 par value per share	06/21/2005		X		184,000	D	$1.6712	8,182,727	I	By Mr. Steven Derby(1)(3)
Common Stock, $.01 par value per share	06/22/2005		X		32,200	D	$1.6	8,150,527	D
Common Stock, $.01 par value per share	06/22/2005		X		32,200	D	$1.6	8,150,527	I	By SDS Management, LLC(2)
Common Stock, $.01 par value per share	06/22/2005		X		32,200	D	$1.6	8,150,527	I	By Mr. Steven Derby(1)(3)
Common Stock, $.01 par value per share	06/22/2005		X		9,200	D	$1.6091	8,141,327	D
Common Stock, $.01 par value per share	06/22/2005		X		9,200	D	$1.6091	8,141,327	I	By SDS Management, LLC(2)
Common Stock, $.01 par value per share	06/22/2005		X		9,200	D	$1.6091	8,141,327	I	By Mr. Steven Derby(1)(3)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. Mr. Steven Derby also has indirect ownership of SAFLINK Common Shares (the "Shares") owned and sold by BayStar Capital II, L.P. ("BayStar"), as General Partner of Bay East, L.P., one of the Managing Members of BayStar Management, LLC. BayStar sold 8,000 shares @ $1.7500 and 5,000 shares @ $1.7627 on 6/20/05; 39,500 shares @ $1.6100 and 16,000 shares @ $1.6712 on 06/21/05; 2,800 shares @ $1.6000 and 800 shares @ $1.6091 on 06/22/05

2. SDS Management, LLC is the investment manager of the Reporting Person. The address of SDS Management, LLC is 53 Forest Avenue, 2nd Floor, Old Greenwich, Connecticut 06870.

3. Mr. Steven Derby is the sole managing member of SDS Management, LLC. The address of Mr. Steven Derby is c/o SDS Management, LLC, 53 Forest Avenue, 2nd Floor, Old Greenwich, Connecticut 06870.

	SDS Capital Group SPC, Ltd., By SDS Management LLC, its Investment Manager, /s/ Steven Derby, Managing Member	06/22/2005
	SDS Management, LLC, /s/ Steven Derby, Managing Member	06/22/2005
	/s/ Steven Derby	06/22/2005
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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