Under the terms of the settlement, T.I., who last month was cast in a new CBS All Access series ‘Twenty Four Seven,’ has also agreed not to participate in or promote digital-asset securities for at least five years.
Rapper and actor Clifford Harris Jr., better known as T.I., has agreed to pay $75,000 to the U.S. government in order to settle charges related to a fraudulent Initial Coin Offering (ICO).
Under the terms of the settlement, T.I., who last month was cast in a new CBS All Access series Twenty Four Seven, has also agreed not to participate in or promote digital-asset securities for at least five years.
The charges allege that Atlanta-based film producer Ryan Felton launched ICOs for two companies, FLiK and CoinSpark. Rather than using the funds to build the platforms he promised investors, the government alleges that he bought a $1 million home and a Ferrari, among other purchases.
The complaint alleges that T.I. promoted and sold FliK tokens on his social media accounts, falsely claiming to be a co-owner and encouraging followers to invest in the ICO. He also encouraged a celebrity friend to promote the tokens, and providing language for them to use on their social accounts. It isn’t immediately clear who that celebrity friend is.
T.I. and three others involved in the scheme have agreed to settle the charges, with Felton the only holdout for now.
The move by the SEC is just the latest example of the feds cracking down on celebrity endorsers of digital currencies. Last year boxer Floyd “Money” Mayweather and DJ Khaled settled similar charges, while earlier this year Steven Seagal also agreed to pay a fine for his actions promoting an ICO.