Clifford Joseph Harris Jr., commonly known as T.I., is being sued for $5 million for allegedly misleading investors with the FLiK Token — a cryptocurrency project co-owned by entertainment executive Ryan Felton.
According to the initial report by The Blast, court documents show that 25 investors poured $1.3 million into the project, which offered claims that each token would be worth $14.99 within 15 months — an unrealistic 25,000 percent interest on the initial six cents each token initially cost.
The investors 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.”
However, FLiK, which was launched in August 2017, failed to achieve anywhere near the advertised growth. Instead, it topped out at just over 20 cents in February 2018 — growing more than 300 percent compared to its private sale price. Following this peak, the FLiK token gradually faded out and is now close to worthless.
In the lawsuit, the group claims that T.I. and Felton defrauded them by pumping the price of the token before dumping a large volume of tokens and exiting with the proceeds.
To drive up the price, the FLiK was marketed by several celebrities — including actor Kevin Hart and Mark Cuban, the billionaire owner of the NBA’s Dallas Mavericks. The investors also claim that the founders made claims that Kevin Hart would be brought on as an owner and “created fake online posts on behalf of Mark Cuban in order to manipulate the value of FLiK Token.”
— Kevin Hart (@KevinHart4real) September 16, 2017
The group is now looking to sue T.I. and Felton for a minimum of $5 million in damages for the alleged security fraud.
This is not the first time celebrities have gotten involved in crypto projects. Recently, Floyd Mayweather and DJ Khaled came under fire for promoting the Centra Tech scam, whilst Johnny Depp made his first move into the cryptocurrency space by joining forces with the blockchain entertainment platform TaTaTu.
The list of celebrities endorsing or even starting their own projects is growing fast — likely due to the marketing power many of these figures command.
What do you think about the FLiK? Should T.I. and Ryan Felton be held accountable for its failure? Let us know what you think in the comments below!
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