The Securities and Exchange Commission has engaged T.I. by promoting fraudulent initial coin offers (ICOs) in relation to a company called FLiK. The Atlanta rapper and actor agreed to “pay a civil fine of $ 75,000 and not participate in any offers or sales of digital asset titles for at least five years,” according to a SEC news release.
The SEC accused T.I. to offer and sell FLiK “tokens” on his social media accounts and encourage his followers to invest in the FLiK ICO, falsely claiming to be a co-owner of the company. The commission further claims that T.I. recruited “a famous friend” to promote FLiK ICO on social media, providing copy for posts. The social media manager of T.I. he was also accused of offering and selling FLiK tokens via T.I.̵
The SEC filed charges against four other Atlanta residents, including film producer Ryan Felton and three others accused of promoting Felton’s fraudulent ICOs. The two companies involved, FLiK and CoinSpark, have also been indicted. Everyone but Felton has decided to settle.
In February T.I. was removed as a defendant in a 2018 civil suit filed by investors. The lawsuit, which also names Felton and comedian Kevin Hart, is ongoing, currently delayed by the COVID-19 pandemic, according to court documents.
Pitchfork contacted representatives of T.I. for comments and more information.