T.I. Facing $5 Million Lawsuit For Allegedly Deceiving Cryptocurrency Investors

Did the emcee/entrepreneur bamboozle backers?

(AllHipHop News) Clifford "T.I." Harris is being accused of swindling twenty-five people to invest in a cryptocurrency called FLiK Token. The plaintiffs are suing Harris and his Atlanta-based partner Ryan Felton for securities fraud and are seeking at least $5 million in damages.

According to TMZ, the investors claim Felton told them the opening price of 6 cents per token in August 2017 would rise to $14.99 within 15 months. However, the value of the currency reportedly dropped to below 1 cent by August 2018, costing the litigants more than $2 million.

The Blast reports court documents accuse T.I. and Felton of using “social media, celebrity endorsements, and well-known industry experts to create the false impression that FLiK Tokens were a valuable liquid investment.” Comedian Kevin Hart and Dallas Mavericks owner Mark Cuban were named in the suit, not as defendants, but as examples that FLiK Token misled investors to believe the two celebrities were connected to the business.

Several Hip Hop artists have taken an interest in blockchain/cryptocurrency. Nas invested in Coinbase, The Game co-signed Paragon, Nipsey Hussle purchased a stake in Follow Coin, the Ol' Dirty Bastard Estate announced Dirty Coin, and Lil Uzi Vert endorsed Dripcoin.