Rapper T.I. sued for millions in ICO scam: Cryptocurrency Fraud

Another Hollywood Celebrity faces charges of fraud for a cryptocurrency investment scheme gone bad. This time it’s American Rapper Clifford Joseph Harris Jr., well known by his stage name “T.I.”. The investors affected by it are suing the rapper as well as Ryan Felton, an Atlanta-based business who ran a fraudulent investment that incorporates virtual currencies.

T.I inculpated in Pump and Dump ICO fraud. According to sources, T.I. and Ryan Felton promoted the creation of FLiK token in August 2017. The duo purportedly asserted that investors would gain up to 25,000 percent returns for their investments.

It was the time when “crypto mania” was at its peak and people were convinced by such grand promises. At the time, each FLiK token was purportedly valued for $0.06. Ryan Felton declared that it would surge upto $15 in a year. The investors apparently stacked up more than $1.3 million with this scheme.

The 25 aggrieved investors say that the duo planned the pump and dump scheme. The investors say that the duo even inflated the value of the tokens to $0.21 using investor fund artificially. However, after this price rally, the duo apparently dumped the tokens, resulting the price of token to crash and leading to great losses for investors.

As part of the plan, the investors say that both of them created a notion that FLiK was a viable investment. This endorsement was backed up by the celebrity like American actor and comedian Kevin Hart. Ryan Felton even falsely associated billionaire Mark Cuban as an investor in the FLiK fraud Scheme.

A year later, FLiK token’s price was less than a penny. The investors say that, Felton blamed T.I. for the price crash, saying:

“T.I gave FLiK tokens to members of his family and friends who sold massive amounts causing rapid devaluation.”

The aggrieved investors are suing Rapper T.I. and Ryan Felton for the fraud and claiming compensation upto $5 million.

Recently, it was revealed that the affected Centra Tech investors were suing Boxer Floyd Mayweather and DJ Khaled. The duo actively popularised the failed Centra Tech cryptocurrency project which was later shut down by the U.S. SEC in that year.

In June, reports came out that another American rapper, ‘The Game’, was in trouble for promoting ParagoinCoins. The aggrieved investors instigated a multi-million dollar lawsuit against the rapper.

Thanks to institutions such as SEC and other Financial regulators the cryptocurrency and blockchain technology is under check. These institutions make way for a fair trading in the market.

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