Angry cryptocurrency investors sue T.I. for $5 million
T.I.’s dalliance into the world of cryptocurrency may end up costing him big.
The rapper, 38, is being sued for securities fraud by a group of angry investors, reports The Blast.
According to docs obtained by the website, the group of 25 investors alleges that T.I. and a business associate, Ryan Felton, engaged in a “pump and dump” scheme, that saw them sink $1.3 million into “now worthless” FLiK Tokens.
They claim that T.I. and Felton used “social media, celebrity endorsements, and well-known industry experts to create the false impression that FLiK Tokens were a valuable liquid investment.” After driving up interest, they sold off their tokens.
The group says that when they finally realized what had happened, Felton had set up another company which acquired FLiK, even though he denied having anything to do with the new company.
According to the docs, in November of last year, a massive “dump” led to their FLiK tokens plummeting in value. The investors claim that Felton blamed the drop on T.I. to them, saying the rapper had given the tokens to family and friends who sold them on coinexchange.com, leading to their devaluation.
The group is seeking $5 million in damages.
Reps for T.I. did not respond to a request for comment.
Source: Read Full Article