The US rapper and actor T.I. is now being sued for securities fraud in relation to a supposed cryptocurrency scam. Specifically, a group of disgruntled investors filed a lawsuit this past Thursday seeking ”at least $5 million”.
This news comes from the celebrity news media outlet The Blast. T.I. is said to have engaged in a cryptocurrency ”pump and dump” scheme together with his business partner.
More specifically, T.I. created a cryptocurrency called FLiK Token with entrepreneur Ryan Felton back in August of 2017. Furthermore, presumptive investors were supposedly promised that a dramatic upswing in the price of the token was imminent.
Investors were promised returns of ~25,000%
Although the opening price was a mere 6 cents per FLiK Token, Felton is said to have stated it would rocket to $14.99 within 15 months. If indeed realized, such a price increase would represent an increase of 24,983% percent.
However, the get-rich-scheme then quickly backfired, according to documents shared by entertainment news platform TMZ. Although the price of FLiK Tokens initially surged from $0.06 to $0.21, they are currently trading at a price of less than a single cent.
A group of dissatisfied investors that reportedly invested $1.3 million in FLiK Tokens has now taken the matter to the courts. The plaintiffs argue that their investments in ”now worthless securities called FLiK Tokens” was mischaracterized by T.I. and Felton.
Felton and T.I. supposedly orchestrated the pump-and-dump scheme
Moreover, they also contend that Felton and T.I. used investments to inflate the price of the token, before dumping the asset. In addition to this, the lawsuit also alleges that Felton created a new company which supposedly acquired FLiK, and then informed investors he was not associated with it.
Felton supposedly also indicated that Dallas Mavericks owner and billionaire Mark Cuban was about to come onboard.
The TMZ piece also mentions that US actor Kevin Hart was touted as an active supporter of the FLiK Token. Furthermore, Hart is said to have promoted the coin through his Twitter account. Nevertheless, Hart is not related to the lawsuit.
Moreover, the dissatisfied investors’ attorney filed a formal lawsuit this past Thursday. According to TMZ, the group is ”going after Felton and T.I. for at least $5 million”.
As of yet, T.I. and his lawyers have declined to comment on the matter.
Image Source: “Flickr”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.