Grammy award-winning rapper, Clifford Harris Jr., popularly known as T.I. has decided to pay $75,000 as a fine to the US Securities and Exchange Commission (SEC) in order to settle charges related to the promotion of unregistered ICOs.
SEC in its filing has mentioned that apart from T.I., four other people, which include Atlanta film producer Ryan Felton, have also been charged with false ICO promotion.
It further stated that two companies named FLiK and CoinSpark, which operated the ICO were being managed by Felton.
While explaining the operation of FLiK and CoinSpark, the regulatory body stated that Felton used the unregistered ICOs to raise money for both of his companies.
SEC then claimed,
“Felton instead transferred FLiK tokens to his own account and sold them in exchange for over $2 million, which he used to buy a Ferrari, a million-dollar home, diamond jewellery, and other luxury goods.”
As per the report, the Hollywood star was basically involved as an advertising face for the venture.
In his statement to SEC, T.I. stated that he actually was not the co-owner of FLiK. He lied about being a co-owner so that his fans starting to invest in it.
A few months ago, the US District judge rejected the class-action lawsuit against the Atlanta rapper, over the FLiK ICO.
The lawsuit was filed by the angry investors who were manipulated into this scam. They invested in unregistered security and later, as its price reaches $0.21, the investors dumped those securities.
It is to be noted that it's been more than a year, the official website of FLiK has been turned down and the value of the token in the present time is nothing.
During the investigation into the matter, the SEC found out that the social media manager of T.I., Willian Sparks Jr. and also the workers at Hollywood film industry, Chance White and Owen Smith, were promoting about CoinSpark.