Rapper T.I. has settled his federal case just days after being charged with promoting a fraudulent cryptocurrency offering.
T.I., whose real name is Clifford Harris, agreed to a civil settlement with the SEC that was announced Friday. He is paying a $75,000 fine and agreeing not to sell or market similar securities for at least five years.
A representative for the rapper did not immediately respond to an email seeking comment on Monday.
Harris got into trouble, the SEC said, because he used his social media accounts to promote FLiK, falsely claiming to be a co-owner, and asked an unnamed actor and comedian to also promote FLiK, providing language calling it T.I.’s “new venture.” The SEC says both of those moves broke federal laws against selling securities without registering with the SEC.
The charges against Harris were part of a larger enforcement action against others including film producer Ryan Felton, who faces wire fraud and other charges in a 28-count indictment unsealed Wednesday.
Felton and William Sparks, T.I.’s social media manager, also sought to trade on his name to sell and promote the cryptocurrencies, federal authorities said.
Federal officials allege Felton took in more than $3 million from investors in two cryptocurrencies — FLiK and CoinSpark — in 2017 and 2018.
