The effective collapse of the FLiK token has led to a seven-figure lawsuit…
American rapper T.I. has found himself in the midst of a legal case, with a new report revealing that he’s being sued over a cryptocurrency token that he was involved in.
The token in question was called FLiK, and it initially attracted around $1.3m in investment, in no small part due to T.I.’s involvement. However, he and his business partner are now being sued for $5m over the token, with 25 investors banded together to claim that FLiK was actually nothing more than a pump and dump scheme.
As reported by The Blast, the lawsuit claims that T.I. and his business partner, named as Ryan Felton, utilised “social media, celebrity endorsements, and well-known industry experts to create the false impression that FLiK Tokens were a valuable liquid investment”.
But it turns out they weren’t. The price of the token went up, then it’s alleged that the business partners “dumped” their tokens. A new company was then created that acquired FLiK, and Felton denied involvement with said firm.
It’s said that a big dump of FLiK tokens at the end of 2017 caused their price collapse, and the collected investors are now claiming securities fraud and the aforementioned damages. The case hasn’t been tried or proven, though, and as of yet, T.I. has not commented on the allegations in the lawsuit. It’s unclear as of yet when the case it likely to go before a court, but when we get further developments, we’ll pass them your way.
Image: one of the original promos for FLiK