TI Settles With Securities And Exchange Commission Over Promoting 'Fraudulent' ICOs
Sep 14 2020
T.I. has not publicly commented on the matter at the time of this article. T.I. never received a dollar from the failed venture and immediately removed his name from it once he learned that the project was undeveloped, the lawyer added.
ORIGINAL STORY: T.I. came out on the wrong end of a battle with the Securities and Exchange Commission and has been ordered to pay a $75,000 fine for helping promote a fraudulent cryptocurrency in 2017.
T.I., 39, is best known for 2008 hits "Whatever You Like", "Live Your Life" and "Swagga Like Us", and was featured on Robin Thicke's No. 1 single "Blurred Lines" in 2013.
T.I. marketed FLiK mementos to his social networking sites fans in 2017, incorrectly specifying that he was actually a co-owner of the "Netlifx on the blockchain", which was actually marketed as generating a streaming media system along with items that might be bought along with electronic mementos, the SEC claimed in a claim Friday. Per his lawyer, T.I. expressed remorse at doing business with film producer Ryan Felton, who reportedly has a controlling stake in the aforementioned companies, and is the alleged ringleader.
Felton's attorney Joshua Sabert Lowther said the Justice Department's allegations were "grossly misplaced" and that he looked forwarding to defending himself at trial. Aside from Felton, all of the individuals have agreed to settlements to resolve the charges against them. He secretly transferred his share of Flix tokens and sold them for a whopping $2.2 million in profits. Felton, who was indicted on September 9, also engaged in manipulative trading to inflate the price of SPARK tokens, the agency said.
T.I. was allegedly involved in promoting Felton's scheme. White and Smith are charged with violating registration and anti-touting provisions. They are also banned in any kind of participation in digital assets for five years.
The U.S. Attorney’s Office for the Northern District of Georgia brought criminal charges against Felton in a parallel action.