Posted 2 years ago | by Ben Armstrong
Celebrities Could be Goinf to Jail for Crypto Fraud!
A recent federal investigation revealed that Ryan Felton, a film producer in Atlanta, may have illegally launched an unregistered Initial Coin Offering (ICO) with the intent to lure investors to support his fund. Another Atlanta rapper, Clifford Harris, also known as T.I, was named in the case.
According to the US Attorneys office, Ryan Felton was accused of conning investors and stealing their money to use for personal purposes. As a producer, Felton promoted a new streaming platform called FLiK – and a plan to launch a new crypto trading platform called CoinSpark.
He may have used fake names on social networks to raise awareness about his imaginary business and draw investors’ attention. After the ICO, Felton inflated the price by selling a large amount of his new tokens to the secondary market.
Maybe This Wasn't a Great Idea
With the money taken from investors, Felton may have bought a house worth $1.5 million and a $180,000 Ferrari.
Regarding the case, Clifford Harris was charged for promoting Felton’s ideas. In particular, Harris claimed he was a founder at Felton’s FliK and posted this info on a social account, advertising news about the new company and the ICO.
According to the Securities and Exchange Commission (SEC), some related parties will face a civil penalty.
In the meantime, prosecutors say Felton’s charges are more serious. Felton was indicted as criminal, and his case has been transferred to the Federal Bureau of Investigation (FBI). Further investigation is undergoing for the final sentence.
There was a lot of money to be made in the wild days of 2017. Bitcoin was hot, and people were suckered into terrible investments. Anyone who could promote an idea was apparently successful in raising funds – but now it looks like the chickens have come home to roost.
Rappers can take money from the gullible, and now it looks like the government is calling a fraud a fraud. Have fun in jail. It will be pretty rough. As for real innovators – the world is wide open. Just look at Ethereum. Or Polkadot.
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