Rapper TI cleared of charges related to failed FLiK ICO

A U.S court has cleared rapper T.I of all charges related to his role in promoting the FLiK ICO. The court found that the rapper wasn’t guilty of any securities violations. T.I had been sued by the investors alongside comedian Kevin Hart, who’s yet to be cleared.

T.I was sued by a group of investors back in November 2018 who claimed that he had misled them to invest in worthless securities called FLiK tokens. The investors claimed they had lost $1.3 million and demanded $5 million in damages. They claimed that together with his business partner Ryan Felton, T.I had endorsed the project on his social media as a valuable liquid investment, but it wasn’t.

The rapper has now been cleared of the charges by District Judge Charles Pannell, Law360 reports. According to the judge, T.I – whose real name is Clifford Harris Jr. – didn’t make any material misrepresentations regarding the value of the tokens.

He stated, “The plaintiffs have merely alleged that Harris encouraged his Twitter followers to visit the website for the FLiK ICO. They have not provided any statements from Harris about the value of the FLiK tokens. The facts as pleaded do not rise to the level of particularity required.”

Judge Pannell further pointed out that T.I hadn’t violated the Georgia Uniform Securities Act as all the activities had taken place outside the state. None of the investors was from Georgia, nor did they allege that they traveled to the state. The company in question is also not physically located in Georgia which absolves T.I of any security violations in the state.

FLiK launched in September 2017 at the height of the crypto hype. It became an instant hit, especially after a number of celebrities endorsed it, T.I included. Comedian Kevin Hart also promoted the token on his Twitter. He has since then also been sued by the investors for misleading them to invest in the project. FLiK also mentioned billionaire investor and the owner of the NBA’s Dallas Mavericks Mark Cuban in its publicity campaigns according to a TMZ report.

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.