Rapper T.I. charged by SEC in cryptocurrency scam | Fox Business
Rapper T.I. charged by SEC in cryptocurrency scam | Fox Business
Markets Published September 12 Rapper T.I. charged by SEC in cryptocurrency scam Rapper isn’t the first celebrity to face SEC action over cryptocurrencies Facebook Twitter Print Email By Julia Musto FOXBusiness close video Barstool’s Portnoy on bitcoin: ‘It’s kind of stuck in the mud’ Barstool Sports founder and president Dave Portnoy discusses dipping his toe into cryptocurrency like bitcoin.
The SEC said the offering was a scam spearheaded by film producer Ryan Felton and, according to Mashable , Felton had promised to build ” Netflix on the blockchain” but never delivered.
T.I. gives a surprise performance during the “No Place Like Home” tour at Coca-Cola Roxy on January 19, 2020, in Atlanta. (Photo by Paras Griffin/Getty Images)
Instead, Felton used money from investors to drive up the price of a second token, SPARK, which he also controlled, the SEC said. Proceeds from the scheme were used to buy Felton a Ferrari , diamond jewelry , a home, and unspecified “luxury goods,” the agency says in its complaint , filed in federal court in Atlanta.
“FLiK's promotional materials further promised that FLiK tokens would be redeemable on the FLiK platform for increasing amounts over the first year, with each FLiK redeemable for $3.99 after the first 3 months, $9.99 after 12 months, and $14.99 after 15 months,” the SEC explained . “No FLiK platform ever existed.”
In February, actor Steven Seagal agreed to pay $334,000 to settle SEC claims that he failed to disclose he was paid to promote a coin offering; boxer Floyd Mayweather and music producer DJ Khaled agreed to settlements in 2018.
