According to reports, a group of 25 investors have filed a lawsuit against T.I. and a businessman for their involvement in a fraudulent cryptocurrency scheme.
Rapper T.I. and businessman Ryan Felton now face a lawsuit from a collective of 25 investors who said the duo peddled a digital currency that was a get-rich-quick scheme.
According to TMZ, the rapper and businessman came up with a virtual currency called FLiK Token in August 2017.
Investors said they were convinced to pour $1.3 million into the cryptocurrency, with a token price of six cents each.
Felton reportedly told investors the virtual currency would have a price of $14.99 within 15 months.
Multiple plaintiffs said the token price jumped from 6 to 21 cents, but crashed downward to less than a penny each by August 2018.
An Elaborate Scheme
The lawsuit suggested the two boosted the token price with investor cash.
When asked about why the value plummeted, Felton reportedly said the decrease came after T.I. gave tokens to family and friends, who then sold them in mass amounts.
Investors said Felton hyped up the offering by claiming big investors were behind the token, and allegedly hinted billionaire Mark Cuban was getting involved.
Felton is also accused of creating a new company that acquired FLiK, and then denied being associated with it.
Actor Kevin Hart promoted FLiK on social media, but he is not involved in the lawsuit, which is seeking at least $5 million from T.I. and Felton.
I'm Super Excited for @Tip and his new venture with @TheFlikIO! They're gonna crush it! #ICO #blockchain #crypto #bitcoin pic.twitter.com/ElGhmDWopj
— Kevin Hart (@KevinHart4real) September 16, 2017
Cryptocurrency a Popular Topic For Rappers
Cryptocurrencies, for better or for worse, seem to have found a home inside of the rap community.
Back in February, rapper ‘Nipsey Hussle’ expressed great promise for cryptocurrency and blockchain. He said the “real boom” would take place once retail “accepts it as a form of payment.”
The rapper, who started investing in Bitcoin back in 2013, compared blockchain to the internet in terms of its revolutionary status in the technology field.
Soujla Boy expressed his love for cryptocurrencies on his new album “Young Drako,” and titled one of the tracks “Bitcoin.” In the song, he indicated he has Bitcoin and Litecoin, virtual currencies that are “my favorite ones.”
Another rapper, ‘The Game,’ has not had as much luck when it comes to the world of cryptocurrency.
Bitcoinist reported in September how his backed project, Paragon, had lost 96% of its market capitalization.
The idea of the project was to utilize blockchain to hash out legality issues related to cannabis in the United States.
What do you think about the lawsuit involving T.I.? Let us know in the comments!
Images courtesy of Twitter (@Tip), Bitcoinist archives