T.I. Is Being Sued about Cryptocurrency
It looks like T.I. got beef with more than a couple financial friends…
A group of 25 investors is taking legal action against the rapper after allegedly getting tricked into putting up $1.3 million for cryptocurrency backed by the rapper, according to reports from TMZ.
In August of 2017, Tip announced the creation of FLiK Token with Atlanta-based businessman Ryan Felton, along with some promises that might have seemed too good to be true. Felton claimed that one token would start at only six cents each, but the investment would be worth $14.99 within only 15 months–an almost 25,000 percent increase.
The suit alleges that both T.I. and Felton used a “pump and dump” scheme, where they boosted the price of the tokens by using money given to them by investors. This move was evident after the value of the tokens initially jumped from six cents to 21 cents–but that all changed when they dumped their tokens and got out the game.
Only one year later, the tokens were worth less than a penny each. The investors were told by Felton that the price drop was because “T.I. had given FLiK tokens to members of his family and friends who had sold massive amounts on coinexchange.com causing rapid devaluation,” according to The Blast. Felton is also being accused of creating a new company that he claims acquired FLiK Tokens, in an effort to rid himself of any blame for the cryptocurrency’s further decline.
The lawsuit claims thatT.I. and Felton created “the false impression that FLiK Tokens were a valuable liquid investment” by also making it appear that Kevin Hart was going to be the face of FLiK–which didn’t turn out to be the case.
In another alleged farce, Felton claimed he got Dallas Mavericks owner Mark Cuban as an investor, even going as far as “creat[ing] fake online posts on behalf of Mark Cuban in order to manipulate the value of FLiK Tokens.”
These investors are accusing of T.I. and Felton of securities fraud, seeking no less than $5 million in damages.