American rapper Clifford Joseph Harris popularly known by his stage name T.I was charged for fraudulent token sales and was fined $75, 000 by the U.S Securities and Exchange Commission (SEC).
The SEC described Harris as a well-known musician, actor and producer who participated in the offer and sale of flick tokens which are unregistered securities. Investors bought and sold these tokens using Etherium and Bitcoin.
T.I vs SEC, Rapper Offer Token
According to the allegations by SEC, between Aug. 20 and Sept. 20, 2017, the rapper offered and sold these tokens on his social media accounts, falsely claiming to be a Flik co-owner, and asked a celebrity friend to promote the sale on social media, calling flik TI’s “new venture.” The Flik sale raised approximately 539 ETH, worth about $164,665 as of Sept. 20, 2017.
The SEC’s orders T.I. to pay a $75,000 civil monetary penalty and not participate in offerings or sales of digital-asset securities for at least five years.
T.I has neither denied nor admitted to these allegations.