On Friday, 11th September 2020, the U.S. Securities and Exchange Commission (SEC) ordered rapper, T.I. to pay $ 75,000. It comes after T.I., a Grammy award-winning rapper, Clifford Harris, violated security laws by promoting an unregistered coin offering.
The SEC alleged T.I was a hype man for the fraudulent cryptocurrency venture. In August 2017, T.I allegedly publicized and sold Flik tokens on his social media accounts and then dumped the token after it became worthless. T.I even falsely claimed to be a Flik co-owner and persuaded his followers to invest in the fraudulent cryptocurrency.
T.I neither agreed nor denied the SEC findings. However, the rapper agreed to pay a $ 75, 000 penalty, as a settlement over the fraudulent ICO. The Atlanta rapper also accepted staying away from digital assets marketing for five years.
T.I Charged alongside Other Four Associates
The Securities and Exchange Commission (SEC) charged the rapper together with four other associates. Among the associates is Ryan Felton, an Atlanta producer who got charged for controlling Flik and CoinSpark, the companies that conducted the fraudulent ICO.
According to the SEC, Felton raised money through ICOs for Flik, a streaming platform, and CoinSpark, a platform for trading digital assets. Felton instead put Flik tokens to his account and sold them for more than $ 2 million. The Atlanta producer allegedly used the $ 2 million to purchase a Ferrari, a million-dollar home, diamond jewellery, and other luxurious items.
Felton allegedly victimized investors by material misrepresentation, funds misappropriation, and crafty trading schemes. As per now, Ryan Felton faces criminal charges.
These associates include William Sparks, T.I.’s social media manager, as well as Chance White and Owen Smith, who are film industry workers. The three allegedly promoted CoinSpark without pointing out they got paid to do so. William Sparks, Chance White, and Owen Smith will all pay a $ 25,000 each as a penalty. The three of them also got prohibited from marketing digital assets for five years.
Kevin Hart Escapes Charges for Flik Promotion
During May 2019, the Flik investors filed an amended complaint to include entertainer Kevin Hart for promoting the ICO on social media. Flik promised to provide a resolution in the entertainment industry. Surprisingly, the Flik venture was a flop that cost investors $ 2 million.
The investors want everyone involved in the Flik project, charged. Allegedly, Hart cooperated in this fraudulent scheme by marketing Flik in his social media account. Investors say after Kevin Hart promoted Flik, its market value rose by 400%; they owe this outcome to the entertainer’s multitude of over 400 million social media followers. The coin eventually decreased in value. The SEC, however, did not charge Kevin Hart. The lawsuit is nonetheless ongoing.
