T.I. ordered to pay $75k for cryptocurrency scam
Atlanta rapper T.I. celebrated the release of his new single “Ring” with Young Thug on Friday. Within a few hours, he was back in the news, but not for anything related to new music.
According to Fox News and other news outlets, Clifford “T.I.” Harris was fined by the Securities and Exchange Commission (SEC) in a cryptocurrency scam. In a settlement with the SEC, T.I. will avoid criminal charges. He agreed to a $75,000 penalty and to not participate in initial coin offering ventures for five years.
The SEC implicated five Atlanta-area people, including T.I., in the scam that was spearheaded by film producer Ryan Felton. Felton misled investors who thought they were funding an entertainment streaming platform and a new cryptocurrency called FLiK. Prosecutors say instead of what Felton promised to deliver, he used the money for “personal use” including a $15 million home and a 2007 Ferrari that he paid $180k cash for.
The SEC also claims “T.I. offered and sold FLiK tokens on his social media accounts, falsely claiming to be a FLiK co-owner and encouraging his followers to invest in the FLiK ICO”. T.I. allegedly asked a celebrity friend to promote the FLiK ICO on social media and provided the language for posts, referring to FLiK as T.I.’s “new venture”.
According to the SEC, the FLiK initial coin offering raised approximately 539 ether, which was worth around $164,665 on September 20, 2017.