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Rapper TI was sued for his alleged involvement in a “pump and dump” scheme with crypto

Rapper TI and his partner were in the news recently, when a group of investors sued them for committing securities fraud being involved in a ‘pump and dump’ scheme. The duo are being sued for a whopping $5 000 000 in damages.

According to court documents that were obtained by a news portal known as The Blast, a group of 25 investors claimed that they spent nearly $1.3 million “for now worthless securities tokens called FLiK tokens.”

The investors claim that the rapper and his partner Ryan Felton used “social media celebrity endorsements, and well-known industry experts to create the false impression that FLiK Tokens were a valuable liquid investment.” The lawsuit further claims that the TI and Felton drove up the price of the tokens with the money they got from the investors and then “dumped” the tokens and disappeared. Furthermore, once the investors caught on to the fraud, Felton created a new company that he said acquired FLiK “and speciously told investors that he had nothing to do with the new sham company.”

The investors stated that, even popular personality Kevin Hart was roped in to drive the prices up for FLiK tokens and announced that FLiK was bringing Hart on as “owner of business.”

Late in 2017, a massive dump of FLiK tokens caused a drop in the coin’s value. The lawsuit filed by the investor states, that “Felton explained that the devaluation was caused, at least in part, 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.”

As reported last month, Young Dirty Bastard, a hip hop artist and the son of one of the founders of Wu-Tang Clan band Ol’Dirty Bastard (ODB), announced the forthcoming launch of a new cryptocurrency. Dubbed “ODBCoin”, the coin will be launched on TAO blockchain network as a sort of fan-oriented loyalty program.

This news was provided by Crypto News India, our partnering media source in India.