The Securities and Exchange Commission has charged T.I. with promoting fraudulent initial coin offerings (ICOs) in connection with a company called FLiK. T.I. agreed to “pay a $75,000 civil monetary penalty and not participate in offerings or sales of digital-asset securities for at least five years,” according to a press release from the SEC.
The SEC accused T.I. of offering and selling FLiK “tokens” on his social media accounts and encouraging his followers to invest in the FLiK ICO, while also falsely claiming to be a co-owner of the company. The commission also claims T.I. recruited “a celebrity friend” to promote the FLiK ICO on social media, providing copy for the posts. T.I.’s social media manager was also accused of offering and selling FLiK tokens via T.I.’s social media accounts.
The SEC brought charges against four other Atlanta residents, including the film producer Ryan Felton and three others accused of promoting Felton’s fraudulent ICOs. The two companies involved, FLiK and CoinSpark, were also charged.. All but Felton have agreed to settle.
In February, T.I. was removed as a defendant in a 2018 civil suit filed by investors. The suit, which also names Felton and comedian Kevin Hart, is ongoing, currently delayed by the COVID-19 pandemic, according to court documents.
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T.I. and four others have been charged in a fraudulent cryptocurrency operation. According to the Securities and Exchange Commission, T.I. and three others have agreed to settlements to resolve the charges against them, however Atlanta film producer Ryan Felton, 46, has not agreed to settle the matter with the SEC. In addition, Felton is facing federal criminal charges after an indictment by a federal grand jury, the U.S. Attorney’s office announced. The SEC accused T.I., Felton, and three others of promoting unregistered and fraudulent initial coin offerings (ICOs), reportedly controlled by Felton. Two companies allegedly controlled Felton, FLiK and CoinSpark, were also charged by the SEC, officials wrote. SEC officials reported Felton raised money by promising to build a digital streaming platform for FLiK, and a digital-asset trading platform for CoinSpark. However, Felton allegedly transferred FLiK tokens to himself and then reportedly sold them into the open market, reaping Felton an additional $2.2 million in profits, according to the SEC. “[Felton] misled investors to believe their money would fund two innovative ventures, but instead, every penny went to support the suspects lavish personal life style,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is a sad reminder to investors to be very careful where they entrust their money, but also a reminder to anyone motivated by greed that the FBI and our federal partners are committed to holding them accountable for their actions.” Click the link in bio for more details on this story‼️ #Streetz945atl #atlanta #ti