T.I. Charged by SEC With Promoting Fraudulent Cryptocurrency, Agrees to Settlement
The Securities and Exchange Commission has charged T.I. with promoting fraudulent initial coin offerings (ICOs) in connection with a company called FLiK. The Atlanta rapper and actor 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.
Pitchfork has contacted representatives for T.I. for comment and more information.
Originally Appeared on Pitchfork
