Ryan Felton, a Hollywood producer from Atlanta, pled guilty to collecting $2.4 million by defrauding bitcoin investors.
The Department of Justice said in a news statement on July 21 that Felton, charged with several charges of wire fraud, securities fraud, and money laundering, confessed to using the monies to support his luxurious lifestyle.
The agency added that the accused got the funds by marketing an Initial Coin Offering for a streaming network called FLiK, with the promise that the firm might rival Netflix (NASDAQ: NFLX).
The funds were deposited to his account, where Felton purchased a $1.5 million home, a $180,000 Ferrari, a $58,250 Chevy Tahoe, and around $30,000 in diamond jewellery using cash.
The producer is said to have misrepresented to entice additional investors by claiming that a famous Atlanta rapper and actor sponsored the project as a co-owner. However, the rapper in question was not involved in the project.
Intriguingly, the creators were misled into believing that the U.S. military had agreed to disseminate the streaming platform to service personnel.
In addition, the platform advertised during the peak of the ICO boom in 2017 claimed to be negotiating licence agreements with major film and television studios.
In the end, Felton dumped more than 40 million FLiK coins on trade exchanges, precipitating a dramatic decline in their value.
The accused exploited 21st-century technologies to steal investors’ money and support his luxurious lifestyle. U.S. Attorney Ryan K. Buchanan said that Felton’s conviction should serve as a warning to anybody who attempts to use developing technology to victimise others.
Coin exchange fraud
Additionally, in 2018, Felton pushed a second ICO for the cryptocurrency trading platform CoinSpark. He assured investors that Spark coin investors would get dividends equal to 25 percent of the trading exchange’s income. Despite prior assurances, the business was never audited.
In addition, the DOJ stated that Felton posed as a possible investor by utilising fictitious identities on numerous online and social media platforms.
The 48-year-old man is awaiting sentence before U.S. District Court Judge J.P. Boulee after pleading guilty to twelve charges of wire fraud, ten counts of money laundering, and two counts of securities fraud.
Also Read: Tesla Is “Certainly Open To Increasing Its Bitcoin Holdings” As DOGE Gains Market Share
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