Rapper T.I. and his business partner are being sued by a group of 25 investors who claimed they invested $1.3M into the cryptocurrency venture.
The investors are accusing of T.I. and Felton of securities fraud. They’re seeking no less than $5 million in damages.
Over the past few years, numerous hip-hop acts attempt to launch their own cryptocurrencies including T.I. who launched FLiK Tokens in 2017.
The suit claims T.I. and Felton created “the false impression that FLiK Tokens were a valuable liquid investment” by making it appear that Kevin Hart was going to be the face of FLiK.
Felton claimed that he got Dallas Mavericks owner Mark Cuban as an investor, and even “created fake online posts on behalf of Mark Cuban in order to manipulate the value of FLiK Tokens.”
The lawsuit alleges that hiked up the price of the FLiK Tokens once they got the money from investors before they “dumped” their crypto-coins and vanished. They said Felton created a new company that he said brought FLiK “and speciously told investors that he had nothing to do with the new sham company.”