Once sentenced to 11 months in prison for violating parole on an earlier gun charge, Rapper T.I. has had his brushes with the law over the years — and he’s just been brushed again, this time by a lawsuit alleging the “Whatever You Like” rapper ripped off a group of investors with a scam involving a new cryptocurrency.
As TMZ reports, T.I. is being sued by 25 investors who allege they were duped into buying $1.3 million worth of a new cryptocurrency known as the FLiK Token.
According to the lawsuit, in August 2017, T.I. and Atlanta businessman Ryan Felton announced the FLiK Token, a form of Bitcoin-like cryptocurrency that could be purchased for six cents each — but, the investors were assured, would rocket to 14.99 within 15 months, representing a staggering 25,000 per cent return on investment.
If the phrase “too good to be true” just popped into your head, that’s the basis of the lawsuit, accusing T.I. and Felton of duping the investors into a “pump and dump” scheme, which the price of the tokens was increased by T.I. and Felton buying more tokens with the money forked over by the investors, which caused the price to rise from six cents to 21 cents.
However, the investors allege, the pair sold all their tokens (at the higher price), which then caused the value to plummet; by August 2018, FLiK tokens were worth less than one cent each.
The nervous investors, alleges the lawsuit (per The Blast), were told by Felton that the reason the price dropped was because “T.I. had given FLiK tokens to members of his family and friends who had sold massive amounts on causing rapid devaluation.”
The suit goes on to claim that T.I. and Felton then claimed that Kevin Hart was going to the the spokesperson for FLiK, creating “the false impression that FLiK Tokens were a valuable liquid investment.”
In fact, Hart tweeted his congratulations to Felton and T.I., although there was no mention of him serving as the face of the cryptocurrency.
In addition, Felton is also alleged to have claimed that Dallas Mavericks owner and “Shark Tank” star Mark Cuban was an investor, and even “created fake online posts on behalf of Mark Cuban in order to manipulate the value of FLiK Tokens.”