The U.S. Securities and Exchange Commission has announced charges against rapper T.I. along with film producer Ryan Felton, and three other individuals for defrauding roughly two dozen investors promoting fraudulent initial coin offerings from the companies FLiK and CoinSpark.
In the SEC’s statement, they reveal all the above-named individuals have settled the matter except for Felton.
Last year in 2017, rapper T.I. joined other hip-hop rappers to launch the new up and coming thing, cryptocurrency, or in this case FLiK Tokens.
According to The Blast, Tip and his business partner, Ryan Felton, were sued for $5M in damages by a group of 25 investors who claimed they invested $1.3M into the new venture. They also said that Tip and Felton, used “social media, celebrity endorsements, and well-known industry experts to create the false impression that FLiK Tokens were a valuable liquid investment.” They also went on to say that they were under the impression that they were going to get Kevin Hart to join as the new face of the business venture and announce that he would be brought to FLiK token as a “owner of the business.”
The lawsuit also alleges that TIP and Felton hiked up the price of the FLiK Tokens once they got the money from the investors before they “dumped” their crypto-coins and then vanished. They said Felton created a new company that he said brought FLiK “and speciously told investors that he had nothing to do with the new sham company.”
They also said, “Felton explained that the devaluation was caused, at least in part, because T.I. had given FLiK tokens to members of his family and friends who had sold massive amounts on coinexchange.com causing rapid devaluation.”
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