T.I., 39, accepted the charge without revealing or even rejecting the SEC's lookings for.
T.I. has been caught in legal trouble.
T.I. ensured FLiK souvenirs to his social media sites fans in 2017, wrongly saying that he was actually a co-owner of the "Netlifx on the blockchain", which was actually promoted as generating a streaming media system along with items that can be bought along with electronic souvenirs, the SEC pointed out in a declaration Friday.
Felton's attorney Joshua Sabert Lowther said the Justice Department's allegations were "grossly misplaced" and that he looked forwarding to defending himself at trial. While the others involved have agreed to settle the charges, Felton is reportedly still fighting the case, for now. He was charged with violation of registration, anti fraudulent activities and federal security laws of anti-manipulation. The SEC's complaint alleges that T.I.'s social media manager William Sparks, Jr. offered and sold FLiK tokens on T.I.'s social media accounts, and that two other Atlanta residents, Chance White and Owen Smith, promoted SPARK tokens without disclosing they were promised compensation in return.
The rapper has agreed to pay a $75,000 fine and not participate in any digital asset sales for at least five years; Sparks agreed to pay a $25,000 fine and likewise refrain from participating in any securities sales for five years. Felton also posed as a potential investor using fake names on internet forums and social media to build excitement for his business and after the initial coin offering he sold thousands of coins on secondary crypto-markets to artificially inflate prices, prosecutors say. The charges against Felton are filled in the United States district court of North Georgia.
"From Aug. 20, 2017 through September 20, 2017, Harris, a well-known musician, actor and producer participated in the sale of digital asset securities called FIik Token in an unregistered initial coin offering", documents state.
The SEC’s investigation was conducted by Virginia M. Rosado Desilets and David H. Tutor, and supervised by John O. Enright, David A. Becker, Ms. Welshhans, and Cyber Unit Chief Kristina Littman.