On Friday, the SEC reported that they were filing charges on two fake initial coin offers (ICOs) against rapper and singer, Clifford Harris jr. (often identified as TI and Typ), movie producer Ryan Felton and three others. Two companies that made sales, Flik and Coinspark, were also charged by the SEC.
A flik token, unregistered securities were sold by Rapper TI, identified by the SEC in his order as 'a recognized singer, actor, author' and sales officer. The SEC clarified that buyers could acquire and sell these tokens in at least two cryptocurrency exchanges using ETH and BTC. "Flik has been described as 'Netflix on the blockchain' by advertisements – a business that sells products and services to a social video network through flik tokens."
"The T.I request from the SEC requires him to pay a civil monetary penalty of $75,000 and not to take part in internet stock offers or transactions for at least five years."
The SEC further outlined the film manufacturer Felton's stated intention to develop a digital streaming network for Flik and a coinspark crypto-trading site but misappropriated the collected funds. He illegally converted to himself flik tokens and sold them to income worth $2.2 million. He also inflated the spark prices, using the misunderstood payment for purchasing a Ferrari, a house of a million dollars, diamond jewels, and some of the other luxury pieces.
Reuters announced Friday that TI did not acknowledge or refute the conclusions of the SEC. The rapper regrets being interested with the publication, Henry E. Mazurek, his lawyer, says he feels he is a small entrepreneur who "would like to promote young artists' entry to the music industry." Furthermore, the lawyer argues that the unsuccessful undertaking of Felton has "never earned a dime."
Source: Bitcoin.com
