SEC charges Rapper T.I. and Film Producer Ryan Felton for promoting fraud ICOs

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SEC Order unregistered ICO

The Securities and Exchange Commission (SEC) filed charges on Friday against two companies and their founder Ryan Felton for allegedly promoting two fraudulent initial coin offerings (ICOs) for platforms that did not exist. 

Also implicated are well-known Atlanta-based rapper and actor Clifford Harris, Jr., aka T.I., and his social media manager William Sparks Jr. They participated with Ryan Felton in promoting the unregistered ICOs through false and misleading social media campaigns. 

Chance White and Owen Smith, both promoted SPARK tokens. And they never disclosed they were receiving compensation in return for the promotion.

Besides Felton, everyone has agreed to settlements with the SEC. Sparks, White, and Smith each agreed to pay $25,000 and will receive conduct-based injunctions. They are not allowed involvement with any digital asset security for five years. 

T.I. agrees to pay civil penalties of $75,000.00, through a payment plan with the SEC.  He also agrees to stay away from digital assets and ICOs for at least 5 years.

FLiK and CoinSpark unregistered fraudulent ICOs

It is alleged that between August 2017 and June 2018, Felton using FLiK and CoinSpark engaged in fraud. Promoting unregistered offerings that he sold to investors for $3 million in illegal profits.