Rapper T.I., Producer Ryan Felton Sued for Backing Two ICO Scams

Rapper T.I., Producer Ryan Felton Sued for Backing Two ICO Scams

Although the court dismissed the securities fraud claims along with other charges against the rapper, the SEC publication revealed that T.I will pay a civil penalty of $75,000.

A year ago 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.

T.I., 39, is best known for 2008 hits "Whatever You Like", "Live Your Life" and "Swagga Like Us", and was featured on Robin Thicke's No. 1 single "Blurred Lines" in 2013.

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Every day you're with them, and then you teach them to be smart, independent, good citizens, to go out there in the world. She doesn't need the show, and like Kendall, has always struggled with fame and being in the spotlight", the source adds.

Securities and Exchange Commission claimed in a press release that Tip claimed to be the co-owner of FLiK and encouraged his social media followers to invest in the company, which was advertised as creating a streaming media platform with products that could be purchased with digital tokens.

As per SEC, producer Felton used the ICO money for personal expenses such as a Ferrari vehicle, multi-million-dollar home and other expensive merchandise. The party was charged over an initial coin offering (ICO) through Ryan Felton controlled companies. Aside from Felton, all of the individuals have agreed to settlements to resolve the charges against them. The complaint also alleges that Felton secretly transferred FLiK tokens to himself and sold them into the market, reaping an additional $2.2 million in profits, and that he engaged in manipulative trading to inflate the price of SPARK tokens.

"T.I. also asked a celebrity friend to promote the FLiK ICO on social media and provided the language for posts", reads the SEC announcement, "referring to FLiK as T.I.'s 'new venture'". White and Smith are charged with violating registration and anti-touting provisions. The three men settled the case with the SEC and agreed to pay a penalty of $25,000 each alongside a five-year ban on their participation in any crypto-related activities. "As alleged in the SEC's complaint, Felton victimized investors through material misrepresentations, misappropriation of their funds, and manipulative trading". The charges against Felton are filled in the United States district court of North Georgia.

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