Rapper TI has been accused by the Securities and Exchange Commission of promoting a fraudulent cryptocurrency offering.
The regulator stated in its complaint that TI – whose real name is Clifford Joseph Harris – sold cryptocurrency tokens using his Twitter account and encouraged his followers to invest in the 2017 FLIK initial coin offering. The agency said that it also falsely claimed to be an owner.
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The SEC said the offering was a scandal told by filmmaker Ryan Felton and, according to Massab, Felton promised to make “Netflix on the blockchain”, but never delivered.
Instead, Felton used the money from investors for another token price, Spark, which he also controlled, the SEC said. In its complaint filed in federal court in Atlanta, the agency Felton was used to purchase a Ferrari, diamond jewelry, a house, and unspecified “luxury goods”.
“FLIK’s promotional material further promised that FLiK tokens would be redeemable on the FLiK platform to raise more in the first year, with each FLiK for $ 3.99 after the first 3 months, $ 9.99 during the 12 months and 15 months. After $ 14.99 for “SEC. Explained. “No FLiK platform existed.”
According to the SEC, the FLiK initial coin was offered for approximately 539 ether, valued at approximately $ 164,665 on September 20, 2017.
“TI asked a celebrity friend to promote FLIK ICO on social media and provided language for the posts,” the agency noted, adding that “FLIK has been called TI’s ‘new venture’.” ”
Without admitting any wrongdoing, Harris has agreed to pay $ 75,000 in a settlement. The 39-year-old will also be selling similar digital asset securities for the next five years.
Cryptocurrency is not the only celebrity facing regulatory action.
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In February, actor Steven Seagal agreed to pay $ 334,000 to settle SEC claims that failed to convey that he was paid to promote a coin offering; Boxer Floyd Mayweather and music producer DJ Khalid agreed to the settlements in 2018.