Chris Harris, commonly recognized as the rapper T.I, agreed to pay $75,000 to a U.S. regulator to settle charges for selling swindle-related token investments. T.I.’s four other associates, including film producer Ryan Felton, found themselves in the same situation for the same.
The SEC claims that Harris sold cryptocurrency tokens on his Twitter account in 2017. He encouraged his followers to invest in the FLiK ICO while claiming to be a partial owner. SEC notes that T.I. was an active participant in the scam.
FLiK ICO Fraudulent Venture in 2017
Initially, Ryan Felton, a film producer who promised to build ‘Netflix on the blockchain’ but never delivered, ran the scam. Felton allegedly used the money from the FLiK ICO scam to promote SPARK, which he also controlled.
SEC notes that Felton’s charges were for using the scam money to buy a Ferrari, diamond jewelry, a home, and unidentified luxury goods. He is the only one of the five named individuals by the SEC who has not agreed to settlements to resolve charges against them. The case is under investigation by the FBI to come to the bottom of the matter.
FLiK owners mentioned that its tokens would be redeemable on the FLiK platform for increasing amounts over that year. In the first three months, each FLiK would be redeemable for $3.99; after 12 months for $9.99, and after 15 months for $14.99. Even after that, the FLiK platform never actually existed.
As of September 20, 2017, the FLiK ICO raised approximately 539 ether, which was worth about $164,665.
Rapper T.I. Willing to Pay the Imposed Fine
Harris agreed to pay the fine of $75,000 imposed without admitting or denying his involvement. He also promised to sit out similar digital asset securities sales for the next five years. By agreeing to pay the fine, Harris hopes his cryptocurrency-related problems are long gone.
However, he will not be the first celebrity to stipulate that. In February this year, Steven Seagal found himself in a similar position where he got accused of promoting an ICO by the SEC. Following the accusation, he paid a fine of $314,000 in hopes of settling the matter.
Moreover, other celebrities like Floyd Mayweather and DJ Khaled paid fines in relation to the same in 2018. As the cryptocurrency world keeps evolving, risks involved are also increasing, including scams; hence, more caution is required by users.