(AllHipHop News) Atlanta rapper T.I. has recently gotten himself in trouble after he was caught up in a web of deception that got the attention of the Securities and Exchange Commission,
Film producer Ryan Felton created a pair of unregistered and fraudulent, per the SEC, initial coin offerings (ICOs). Reports say, he then recruited rapper and actor Tip Harris and three others to promote the two ICOs. T.I. was accused of breaking the law and selling fraudulent cryptocurrency investments but has agreed to pay a $75,00 fee to settle the matter. The other individuals have agreed to settlements to resolve the charges against them. Felton has not.
Alleged victims say that two companies, FLiK and CoinSpark, worked a “deception” that misled those individuals that invested in the cryptocurrency
The SEC contends that, in 2017, T.I. promoted and sold FLiK tokens on his social media platforms, leading his millions of followers to believe that he was a co-owner of the cryptocurrency company.
T.I.’s social media manager was the actual culprit, and that person allegedly offered and sold FLiK tokens on T.I.’s social media accounts. A pair of other men, Chance White and Owen Smith, pushed SPARK tokens but failed to disclose they were promised payment if they did.
These tokens were sold as “investment contracts” and told that this would move like “Netflix on the blockchain,” a streaming platform where people could purchase products, services, and other commodities with the FLiK tokens.
His partner, Felton did not do that.
Instead, Felton purchased a Ferrari sports car, million-dollar him, diamonds, and other wares, the SEC claims. T.I. was apparently unaware and blind-sided by the deception. At 39, T.I. has amassed a weighty empire and, AllHipHop sources say he would not jeopardize his reputation ripping his fans off.
Since Felton has refused to cooperate or settle with the SEC, he will likely face a heavy legal battle in the future.