US filmmaker pleads guilty to cryptocurrency scam

Atlanta filmmaker Ryan Felton has pleaded guilty to charges that he ran a crypto scam that saw him steal more than $2.5 million from cryptocurrency investors.

The filmmaker, indicted in the U.S. for his activities around cryptocurrency projects Flik and CoinSpark, is now facing a jury trial, reportedly pleading guilty four days after the proceedings.

Felton faces multiple charges, including wire fraud, securities fraud and money laundering, the DOJ revealed in a press release.

Scam via 2017 ICO

U.S. Attorney Ryan K. Buchanan said in a press release that Felton’s fraudulent scheme began with the initial coin offering boom in 2017.

According to the allegations, the producers took advantage of the huge interest in crypto at the time to promote the ICO for FLiK, claiming that the project would rival or even surpass streaming giant Netflix.

The coin’s public sale generated a lot of interest when FLiK falsely linked FLiK to a famous American rapper and actor, mistaking the individual for the co-owner.

He also falsely claimed that FLiK had a distribution agreement with the US military and a content licensing agreement with a leading Hollywood studio. He then defrauded investors of about $2.4 million from FLiK before proceeding to transfer more funds to his personal account from CoinSpark, a crypto exchange that raised over $200,000 from investors.

luxury lifestyle

Felton used the money to fund his “luxury lifestyle,” buying a $1.5 million home in an all-cash deal, according to the lawsuit. He also bought a 2007 Ferrari 599 GTB for $180,000, a Chevrolet Tahoe for $58,250 and diamond jewelry for $30,000.

“The defendants used 21st century technology to commit an age-old fraud: lying to investors to steal their money and fund their lavish lifestyle,” Buchanan said.

He believes Felton’s conviction will help deter others who might seek such avenues to get money from investors.

Felton, 48, is awaiting sentencing, the Justice Department said in a news release.

Source of information: Compiled from COINJOURNAL by 0x information.The copyright belongs to the author Benson Toti and may not be reproduced without permission

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