Investors are suing TI for $5 million after he allegedly dropped out of a cryptocurrency deal.
Tip has gotten himself into some more legal trouble, this time involving securities fraud. Court documents show 25 investors put $1.3 million into “now worthless securities called FLiK Tokens.”
The group of investors says the rapper and his business partner, Ryan Felton, used “social media, celebrity endorsements, and well-known industry experts to create the false impression that FLiK Tokens were a valuable liquid investment.” The lawsuit claims T.I. and Felton raised the price of the tokens with the investors’ money and then “dumped” their tokens and disappeared. They claim once they realized what went down, Felton created a new company that he said acquired FLiK “and speciously told investors that he had nothing to do with the new sham company.”
The investors claim the Atlanta rapper also said #KevinHart would be the ace of the company and the owner, which made them raise the price. Additionally, the investors said Felton got Dallas Mavericks owner Mark Cuban to invest and even “created fake online posts on behalf of Mark Cuban in order to manipulate the value of FLiK Tokens.”
The investors say “a massive dump” of FLiK tokens resulted in the value of the company dropping. Felton explained that the devaluation was caused, at least in part, because T.I. had given FLiK tokens to members of his family and friends who had sold massive amounts on coinexchange.com causing rapid devaluation,” the investors claim.
Now the group is suing Felton and T.I. for securities fraud, and want $5 million in damages. The story is still developing.