T.I. Sued For $5 Million Over Alleged Cryptocurrency Scam
The rapper is accused of convincing investors to investing in a cryptocurrency.
According to reports, T.I. and ATL-based businessman Ryan Felton introduced the investors to FLiK Token in Aug. 2017. They allegedly convinced them to invest $1.3 million into the cryptocurrency with the promise they would receive more money in return. Felton claimed that one token of FLiK would start at six cents each, but it would eventually be worth $14.99 within 15 months. Assuming that he was right, that would mean an investment in one coin would mean a nearly 25,000 percent increase in value.
Unfortunately, that estimate was way too good to be true. The suit suggests T.I. and Felton boosted figures of the token by using the money that had already been given to them by investors.
That became more obvious by the following year, when the tokens were worth less than a penny. The value decrease was reportedly attributed to T.I. gifting "FLiK tokens to members of his family and friends who had sold massive amounts on coinexchange.com causing rapid devaluation," according to Felton.
To make matters worse, Felton is also accused of creating a new company that allegedly acquire FLiK Tokens, which was supposed to absolve him from the matter.
The investors are seeking at least $5 million in damages for the scam.
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