Rapper T.I pays $75,000 fine in crypto fraud case

three coins over a black background representing the standard of the cryptocurrency market

Rappers and police are often accompanying each other. Drugs and criminal activity tend to preclude rap stardom. This time it is the Atlanta based T.I charged with cryptocurrency fraud along with four others.

The Security and Exchange Commission announced this Friday that it had charged T.I along with four other residents of Atlanta, which also include film producer Ryan Felton. Ryan Felton described as the leader of the company that promoted two fraudulent and unregistered initial coin offerings.

The Grammy award-winner T.I’s real name is Clifford Harris, reached fame in 2008 with his hit songs that include ‘Live Your Life’ and ‘Swagga Like Us.’ According to the allegations by the Security and Exchange Commission. Clifford, 39, was involved in a cryptocurrency scam in 2017. Moreover, the fraud centered around the promotion and selling of Flik and CoinSpark.

The scam fell apart in 2017. Because a group of angry investors filed a complaint with the SEC, those investors reportedly lost millions of dollars in the fraud. Clifford managed to get many wealthy investors. He urged them to invest their money as he claimed to be the co-owner of the company. Plus, investors were told that the coin was worth $0.06 at the time of purchasing but will reach $14.99. Contrary to their expectations, the value of the coins decreased to $0.001 by 2018.

The Security and Exchange Commission told the Atlanta rapper that he was not allowed to do whatever he wanted and his participation in the scam is straightforward. Therefore after this revelation, T.I found it best to admit his guilt and saved himself from serving a jail term by getting a settlement.

Clifford agreed to get a deal in return for a $75,000 fine; however, he refused to admit the guilt and threw the whole story on Ryan Felton. Felton raised the money through initial coin offerings and promised to invest in starting a streaming service and a platform form for digital trading.

The SEC reported they spent the money on expensive vehicles. Plus, other luxury items, like jewelry. T.I helped Felton in attracting potential investors using his fan base. T.I’s lawyer claims the rapper had not received money from Felton. Moreover, T.I tried to exit upon realizing it was a scam.

T.I saved himself by paying a $75,000 fine, plus accepting a ban from the cryptocurrency market for five years. However, his associate Felton rejects the accusations and is reluctant to make any deals. The SEC after filing charges, also banned Flick and Coinspark