Rapper T.I. and his business partner are being sued for securities fraud by several individuals that had invested in their cryptocurrency. The “Live Your Life” rapper – whose real name is Clifford Harris Jr. – and Ryan Felton are being accused of running a standard “pump and dump” scheme, a type of financial fraud in which a stock’s price is inflated through false and misleading statements.
Investors are claiming that they put more than $1 million into what they now call “worthless security” tokens known as FLiK Tokens. They say that T.I. and Felton used celebrity endorsements, social media and industry experts to build on the idea that FLiK was a valid and liquid investment.