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Rapper T.I. is hoping to escape a lawsuit filed against him by investors in a failed cryptocurrency ICO, FLiK.
Investors allege that T.I. — whose real name is Clifford Joseph Harris Jr. — hyped up the entertainment company FLiK and its ICO. The rapper heavily promoted the ICO with the company’s executive, Ryan Felton.
The duo promised a major return on investment, but now the token is worthless. Seriously. Here’s a look at where FLiK sits today, with 99.26% value lost.
T.I. filed for a dismissal on Thursday, saying the amended complaint lists him and Felton as controlling shareholders. However, it’s not mathematically possible for both oft hem to own more than 50% of the company.
The dismissal also says that T.I.’s actions did not induce the investors to purchase the tokens. It also says the complaint lacks sufficient evidence that he solicited investors to buy tokens.
Most of the original lawsuit’s content revolved around the rapper’s tweets about the failed ICO. That complaint alleges that Harris and Felton ran a pump and dump scheme, hyping FLiK with celebrity endorsements. Investors claim they were outright duped, even though they were investing in a highly speculative financial bet with no regulations.
FLiK tokens were supposed to address the issue of low artist payouts for royalties. Using blockchain ledgers and transactions, FLiK promised creators up to 98% of their profits.
Early on, Felton promised investors a skyrocketing token from $0.06 to $14.99 in 15 months. FLiK hit an all-time high of around $0.35 USD before people realized it was a scam.
T.I.’s lawyers argue that the validity of the case comes down to whether Georgia’s securities laws apply. During its brief life, FLiK was a globally traded token.
“We don’t see how Georgia law would govern sales on some exchange somewhere any more than say Hawaiian law would.”
T.I. also labeled two other claims against him as “shotgun pleadings.” Specifically, he says claims of unjust enrichment and punitive damages generalize the facts and should be thrown out as well.