A group of 25 investors is making a legal move against T.I. after reportedly getting deceived into setting up $1.3 million for cryptocurrency supported by the rapper, as per TMZ. In August 2017, Tip and Atlanta-based businessman, Ryan Felton, declared the formation of FLiK Token with promises that appeared to be unrealistic. Felton asserted that one token would start at six pennies each, yet that venture would be worth $14.99 within 15 months, which represented a nearly 25,000 percent expansion.
The suit asserts T.I. and Felton utilized a “pump and dump” plan where they raised the cost of the tokens by utilizing the cash given to them by investors. The value of the tokens jumped from six pennies to 21 pennies. In any case, that all changed when they dumped their tokens, and got out of dodge.
By August 2018, the tokens were worth not as much as a penny each. The investors were told by Felton that the value drop was on account of “T.I. had given FLiK tokens to members of his family and friends who had sold massive amounts on coinexchange.com causing rapid devaluation,” per The Blast. Felton is blamed for making another organization that he asserts gained FLiK Tokens, thusly, freeing himself of any fault for the digital currency’s further decrease.
The suit claims T.I. and Felton made “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.
I'm Super Excited for @Tip and his new venture with @TheFlikIO! They're gonna crush it! #ICO #blockchain #crypto #bitcoin pic.twitter.com/ElGhmDWopj
— Kevin Hart (@KevinHart4real) September 16, 2017
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 investors are blaming T.I. and Felton of security fraud. They’re looking for no less than $5 million in damages.
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