SEC Charges Individuals with Cryptocurrency Offering Fraud – Tech

Advertisement

BEGIN ARTICLE PREVIEW:

On Sept. 11, the Securities and Exchange Commission (SEC) announced that it was filing charges against Atlanta-based individuals who allegedly perpetrated fraud in connection with a cryptocurrency initial coin offering (ICO). The Northern District of Georgia complaint accused film producer Ryan Felton, the individual accused of the most wrongdoing, of violating various provisions of the federal securities laws, according to an SEC press release.

The defendants are Felton, rapper and actor Chris Harris (also known as T.I. or Tip), and three other individuals involved in the film industry. Felton’s two companies, FLiK and CoinSpark, were also implicated in the proceedings. The complaint contended that between August 2017 and June 2018 Felton, through his entities, engaged in fraudulent and unregistered offerings of digital asset securities, making over $3 million in illegal profits from investors.

Specifically, Felton agreed to build a streaming platform for the cryptocurrency FLiK and a trading platform for CoinSpark. Instead, he allegedly took the investors’ money for himself and kept invested FLiK tokens, and sold them at a profit of $2.2 million. According to the complaint, Felton used the funds to purchase luxury goods including a million-dollar home, a Ferrari, and diamond jewelry for his wife.

T.I.’s social media …

END ARTICLE PREVIEW

READ MORE FROM SOURCE ARTICLE