Victor Ugochukwu · Dec 14, 2020 . 5min read
SEC Indicts Rapper T.I. Aka Clifford Joseph Harris for Fraudulent ICO’s
For Fraudulent ICO Scam, SEC fines $75,000 and also orders Rapper T.I. to not participate in Initial Coin Offering ventures for five years.
By Komal Joshi · Sep 15, 2020 . 6min read
Rapper T.I. has been indicted by the SEC (Securities and Exchange Commission) for promoting a deceitful cryptocurrency offering. The regulator states that T.I., whose real name is Clifford Joseph Harris, traded cryptocurrency tokens using his Twitter account. He urged his followers to fund in the 2017 FLiK initial coin offering. However, Securities and Exchange Commission fines T.I. with $75,000 for his association with an unregistered and fraudulent initial coin offering (ICO). Additionally, he cannot partake in sales or any digital asset securities or cryptocurrency offerings for at least five years.
According to the SEC, Harris advanced one of two swindling ICO ventures directed by producer Ryan Felton. The charges assert that Ryan Felton (Atlanta-based film producer) originated ICOs for his two companies, CoinSpark and FLik. Felton assured investors that he would develop a crypto exchange and a digital streaming platform.
However, he plundered the funds raised in the ICOs. He carried out manipulative trading to increase CoinSpark’s SPARK cryptocurrency price. Additionally, he made an extra $2.2 million in profits. Felton utilized the manipulative trading funds he stole to purchase a million-dollar home, a Ferrari, diamond jewellery, and other luxury goods.
Fraudulent ICO Supported By Celebrities
Rapper T.I. was trading and supporting FLiK tokens as his new venture on his social media accounts. He erroneously represented himself as a FLiK co-owner. He urged his followers to fund in the FLiK ICO. Moreover, T.I. also requested celebrity friends to advertise the FLiK ICO and offer a language to work on their social media, pointing to FLiK tokens as T.I.’s “new venture.”
According to SEC, T.I.’s social media manager, William Spark Jr, authorized and sold FLiK tokens on T.I.’s social media accounts. Two other Atlanta residents, Owen Smith, and Chance White, also supported SPARK cryptocurrency tokens. However, they did not disclose that they received payment in return.
The U.S. District Court for The Northern District of Georgia filed charges against the two companies and five individuals. The complaint accuses Felton of infringing anti-manipulation, anti-fraud, and registration provisions of the federal securities laws. Additionally, the complaint solicits disciplinary action against Felton. The disciplinary action includes civil monetary penalties, injunctive relief, as well as a ban from serving as a director or an officer of any public company.
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