The associates of T.I, a popular U.S Rapper, has been asked to pay more than $100,000 for their involvement in a fraudulent and unregistered ICO.
According to the court ruling, the Rapper associates have all agreed to pay more than $100,000 for their involvement in the launch of the FLiK token. With the latest development, it looks like a protracted lawsuit will now finally be put to rest after the U.S District court approved the settlement. According to a filed record obtained from the Northern District of Georgia Court, the offenders, William Sparks Jr, Chance White, and Owen Smith, have been mandated to pay $102,992.
Associates of the Rapper were slammed with different charges
In the court filing, the amount levied on the Rapper’s associates was said to be fees covering penalties, disgorgements for the role they played in selling the tokens through an initial coin offering. Notably, T.I is a famous rapper, singer, and songwriter who has won numerous awards, including three Grammy academy awards boasting several hit songs. The SEC announced in a post that it had charged the three associates of the Rapper along with another person, Ryan Felton, a video production company owner, and the Rapper, T.I.
According to the SEC, all of the above parties had a major role to play and got involved in the sale of the token at one point or the other. Sparks, who manages the Rapper’s social media accounts, was slammed with a registration provision lawsuit after using the Rapper’s official account to sell the FLiK tokens. In other news, White and Smith were both charged for their violation of the registration and anti-commuting laws for promoting CoinSpark without letting authorities know that they were getting paid for their services. After they were sued to court, all three of them agreed that they would settle out of court, a motion that the court already agreed.
SEC orders Rapper to pay a $75,000 fine
In a new twist of events, the SEC has said that it is still pushing its case against Felton while it has ordered T.I to pay $75,000 in penalty fees and stay away from participating in offering or sales involving digital assets for the next five years. The FLiK token was one of the many ICO tokens launched when the ICOs saw a rise in 2017. When it was launched in September, Felton promised those that were buying that the coins would begin a massive surge in the space of one year. Furthermore, Felton noted that the price of the token is projected to hit $15 in the next couple of months.
However, that has not happened and doesn’t look like it will happen with the coin currently trading at $0.000289, with its highest peak coming at $0.21 in October. In 2018, several investors, including Felton and T.I, were sued for their involvement in the pump and dump scheme by hyping the token using their respective celebrity influence, authorities said. Even though not initially sued, Kevin Hart was later added to the lawsuit after promoting the coin on his official social media accounts.