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Rapper T.I.’s associates to cough up $100K in FLiK token case with SEC

Rapper T.I.’s associates to cough up $100K in FLiK token case with SEC

Three associates of Clifford Joseph Harris Jr., a rapper often known as T.I. who was liable for serving to launch the FLiK token, have agreed to pay greater than $100,000 after a U.S. district court docket approving a settlement.

In keeping with information filed Nov. 17 within the U.S. District Courtroom for the Northern District of Georgia, Probability White, Owen Smith, and William Sparks Jr. can pay $102,992 in a settlement masking penalties, charges, and disgorgements for his or her position in promoting tokens in preliminary coin choices, or ICOs, for FLiK and CoinSpark. T.I., a rapper, singer, and songwriter, has gained three Grammy Awards and had a number of hit singles together with No matter You Like and Stay Your Life.

The SEC introduced fees in opposition to the three in September together with Ryan Felton, founding father of video manufacturing firm AVA, and T.I., alleging that the ICOs had been “unregistered and fraudulent.” Sparks, who’s T.I.’s social media supervisor, was charged with violating registration provisions by allegedly promoting FLiK tokens on the rapper’s social media accounts.

White and Smith, who’re each concerned within the Atlanta movie business, had been charged with violating registration and anti-touting provisions for allegedly selling CoinSpark with out revealing they had been being paid for his or her endorsement of the token.

The trio agreed to settlements at the moment, which had been accredited by the court docket on Tuesday. The SEC’s case in opposition to Felton is reportedly nonetheless ongoing, whereas the fee ordered T.I. to pay a $75,000 penalty and never take part in choices or gross sales of digital-asset securities for at the least 5 years.

FLiK was considered one of many tokens introduced throughout the 2017 ICO growth. When the token was launched that September, Felton claimed on social media that FLiK would see “large progress in a single yr” and be redeemable for $14.99 in 15 months. Nevertheless, the value of the token solely reached $0.21 at its peak on Oct. 17 and is at the moment being traded at $0.000289 in line with knowledge from CoinMarketCap.

In 2018, a bunch of 25 buyers named Felton and T.I. in a class-action lawsuit accusing them of working a pump-and-dump scheme with FLiK by hyping up the token utilizing deceptive data and movie star endorsements.

The group’s authorized workforce later amended the lawsuit to incorporate comic Kevin Hart for his alleged position. A U.S. district decide dismissed the go well with in opposition to T.I. earlier this yr, stating he discovered no concrete proof of securities violations or negligent misrepresentation relating to the rapper touting FLiK.