Rapper T.I. is the latest musician who is being sued for his involvement in an alleged fraudulent ICO. According to media reports, 25 investors are suing the rapper and an associate for their involvement in an alleged fraudulent ICO scheme.
Rapper and businessman accused of promoting fraudulent ICO
T.I. and Ryan Felton is being sued for $5 million from the 25 investors. The rapper and businessman promoted the cryptocurrency FLiK back in August 2017. During its ICO stage, the coin cost 6 cents and jumped to 21 cents when it was released. Soon after, the coin crashed and now costs less than 1 cent.
The investors are saying that they were told to buy $1.3 million worth of FLiK and that it would apparently reach $14.99 within a 15-month period.
According to the lawsuit, the two apparently promoted the token price using investor cash. Felton apparently blamed T.I. for the value of the coin plummeting, saying he gave tokens to friends and family. They then sold the tokens in mass amounts.
It is also alleged that the coin was hyped by Felton who hinted that billionaire Mark Cuban would be getting involved in the project. It is said that Felton created a new company that obtained some FLiK coins. Afterward, Felton denied any association with the company.
Actor and comedian Kevin Hart also promoted FLiK but he is not being sued.
Read Bitmart’s blog about other celebrities getting behind cryptocurrencies. Click here for “Crypto-Wood: Celebrities who are into cryptos”.
Other celebs involved in crypto lawsuits
At the same time, Floyd Mayweather and DJ Khaled also have a class action lawsuit on their hands. The world-renowned boxing champion and record producer were involved with the Centra Tech’s CTR token. Both promoted the crypto on social media. Mayweather wrote on Twitter “You can call me Floyd ‘crypto’ Mayweather from now on”. Khaled is seen referring to the Centra wallet app and Centra card.
The two founders of Centra were arrested in April this year and charged with orchestrating a fraudulent ICO.
It also surfaced that whilst it was promoted that Centra had a business arrangement with Visa and Mastercard, this was in fact false.
In conclusion, cryptos are risky. Be sure to invest in solid projects. Meanwhile, the price of Bitcoin is $6 445. 32, according to Coinmarketcap.