Atlanta Movie Producer Pleads Responsible to $2.5M Crypto Fraud

An Atlanta movie producer has just lately pleaded responsible to wire fraud and cash laundering costs for selling fraudulent crypto funding schemes that defrauded buyers of over $2.5 million.

Man Pleads Responsible to ICO Fraud

In an official assertion, the U.S. Division of Justice (DOJ) revealed that the 48-year-old convict, Ryan Felton, promoted an preliminary coin providing (ICO) for an leisure streaming platform dubbed FLiK in 2017.

Felton claimed the platform would surpass the favored streaming service Netflix. To additional encourage buyers to purchase the FLiK cash, the movie producer asserted that the corporate was co-owned by a distinguished Atlanta rapper and actor, who was fined by the U.S. SEC in 2020.

The convict additionally informed buyers that the U.S. navy had agreed to distribute FLiK and that the platform was already finalizing licensing offers with main studios. The DOJ famous that none of those claims had been true.

Felton satisfied buyers that he was actively growing the platform and would use all of the proceeds from the ICO sale to launch FLiK formally. Nonetheless, as quickly because the ICO ended, he dumped the over 40 million FLiK cash he held, which prompted the token’s worth to plummet, leaving buyers with nugatory property.

The Justice Division additionally identified that as an alternative of utilizing investor funds to develop FLiK as promised, the movie producer diverted the proceeds from the token sale, price roughly $2.4 million, to his private account.

Felton used this cash to fund his extravagant way of life, together with a $1.5 million dwelling, diamond jewellery, and a Ferrari, amongst different autos.

Identical Man, Completely different Schemes

In keeping with the DOJ, Felton carried out the same scheme for a crypto change known as CoinSpark in 2018. He made a number of false claims to draw buyers to the Spark coin ICO.

The convict claimed that buyers would obtain 25% of the change’s income in dividends and {that a} famend accounting agency would audit CoinSpark’s funds each quarter.

As was the case with FLiK, not one of the claims had been true. He raised over $200,000 within the ICO and subsequently informed buyers that CoinSpark would not be capable to present the 25% promised, providing to refund their investments.

Nonetheless, Felton ignored buyers’ demand for a refund and diverted the funds to his private account.

Talking on the case, Legal professional Ryan Ok. Buchanan mentioned: “The defendant used Twenty first-century expertise to perpetrate an age-old fraud: mendacity to buyers to steal their cash and fund his personal lavish way of life. Felton’s conviction ought to function a warning to anybody who seeks to capitalize on rising expertise to victimize others.”

Felton pleaded responsible to 12 counts of wire fraud, ten counts of cash laundering, and two counts of securities fraud, which had been added on the fourth day of his jury trial. His sentencing listening to is but to be scheduled.