Rapper T.I. was accused by the Securities and Exchange Commission of promoting a fraudulent cryptocurrency offer.
The regulator stated in his complaint that T.I. – whose real name is Clifford Joseph Harris – sold cryptocurrency tokens using his Twitter account and encouraged his followers to invest in the initial 2017 FLiK coin offering. He also falsely claimed to be a co-owner, the agency.
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The SEC said the offer was a scam headed by film producer Ryan Felton and, according to Mashable, Felton had promised to build “Netflix on blockchain”
Instead, Felton used investor money to raise the price of a second token, SPARK, which he also controlled, the SEC said. Proceeds from the scheme were used to buy Felton a Ferrari, diamond jewelry, a house and unspecified “luxury goods,” the agency said in its lawsuit, filed with federal court in Atlanta.
FLiK’s promotional material further promised that FLiK tokens would be redeemable on the FLiK platform for increasing amounts in the first year, with each FLiK redeemable for $ 3.99 after the first 3 months, $ 9.99 after 12 months, and $ 9.99 after 12 months. 14.99 after 15 months, “the SEC explained. “No FLiK platform has ever existed.”
According to the SEC, the initial offering of FLiK coins raised about 539 ether, worth about $ 164,665 on September 20, 2017.
“T.I. also asked a famous friend to promote FLiK ICO on social media and provided the language for the posts,” the agency noted, “referring to FLiK as T.I.’s ‘new venture’.”
Without admitting any wrongdoing, Harris agreed to pay $ 75,000 in a settlement. The 39-year-old will also avoid sales of similar digital asset stocks for the next five years.
YOU. he’s not the only celebrity facing cryptocurrency regulatory action.
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In February, actor Steven Seagal agreed to pay $ 334,000 to settle SEC claims that he hadn’t disclosed that he was paid to promote a coin offering; boxer Floyd Mayweather and music producer DJ Khaled agreed on deals in 2018.