THE ATLANTA MOVIE MAKER RYAN FELTON PLEADS GUILTY TO $2.5 MILLION CRYPTO SCAM!
In a federal court, a film producer from Atlanta admitted to encouraging bitcoin investments as part of a fraud scheme.
On the fourth day of his trial, Ryan Felton, 48, was found guilty of fraud and federal money laundering. Prosecutors claim that he lied to promote one of his crypto-based businesses and claimed that well-known individuals. Also including Atlanta rapper Clifford “T.I.” Harris Jr. Were participating in the project.
According to the prosecution, the plan started in 2017 when Felton started marketing FLiKIO, a brand-new entertainment streaming service he said would “surpass Netflix.” Next, he organized fundraising events where investors could purchase FLiK “tokens” or “coins” in return for cryptocurrencies.
To launch FLiKIO, Felton promised to use the funds earned from the initial coin offerings. Instead, according to the prosecution, the 40 million FLiK tokens were used for trading on stock exchanges, moving nearly $2.4 million to personal accounts, and financing his “extravagant lifestyle.”
According to a statement made public on Thursday, Felton paid cash for a $1.5 million house, a $180,000 Ferrari coupe, a brand-new $58,250 Chevy Tahoe, and about $30,000 in diamond jewelry.
Felton revealed that T.I. was a co-owner in his business on social media to raise the price of the FLiK coins. Even before FLiKIO launched its initial coin offering in August 2017, the celebrity tweeted about the startup. Additionally, Felton informed investors he was negotiating licensing agreements with major movie and television studios that the U.S. military had agreed to make the FLiKIO streaming platform available to service members.
In truth, Felton had no agreement with the military, he had never approached studios about FLiKIO licensing, and T.I.’s only involvement with the business was approving a social media promotion.
The first coin offering raised more than $200,000 for the business. Felton then declared that none of the investors would get the 25% dividend he had promised. So instead, he provided them with a refund. Still, according to the prosecution, he started to ignore and reject their refund requests. Once more, he transferred the majority of the money to his bank accounts.
Twelve counts of wire fraud, ten counts of money laundering, and two counts of securities fraud were all admitted to guilt by Felton. Judge J.P. Boulee of the U.S. District Court will sentence him later.