SEC fines T.I. $75K in cryptocurrency scheme

T.I. is out of the crypto game for a while. Black Enterprise reports that rapper and businessman Clifford “T.I.” Harris was fined $75,000 by the Securities and Exchange Commission, charged with helping to promote “unregistered and fraudulent initial coin offerings (ICOs).” Also charged are film producer Ryan Felton, two companies controlled by Felton, FLiK and CoinSpark, T.I.’s social media manager, William Sparks Jr, and Atlanta residents Chance White and Owen Smith, according to the SEC release.

The settled administrative order states “the SEC finds that T.I. offered and sold FLiK tokens on his social media accounts, falsely claiming to be a FLiK co-owner and encouraging his followers to invest in the FLiK ICO. T.I. also asked a celebrity friend to promote the FLiK ICO on social media and provided the language for posts, referring to FLiK as T.I.’s ‘new venture.’” Sparks Jr. allegedly offered and sold FLiK tokens on T.I.’s social media accounts, and White and Smith allegedly promoted SPARK tokens without disclosing they would receive compensation in return.

The SEC’s order against T.I. requires him to pay a $75,000 civil penalty and T.I. is no longer allowed to participate in offerings or sales of digital-asset securities for at least five years.

All but Felton agreed to settlements to resolve the charges against them.

Sources: Black Enterprise, SEC.gov

 

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