A new illustration that, when it’s too good to be true, it probably is – On November 1, a class action suit filed by investors from all walks of life was filed in the United States. of a Georgia court. Having invested nearly $ 2 million in the rapper’s ICO for the 8.6 million Twitter subscribers, and having lost everything when this ICO turned out to look like a good old Pump & Dump, they ask for repair. Having been able to exchange with Aurélien Béranger, the main French plaintiff, as well as with Alex Loftus, the lawyer representing multiple plaintiffs, here is a presentation of this case.
An ICO to “decentralize Netflix”
Everything started so well in 2017. Remember, this is the sweet period of the bull market, the speculative bubble will soon begin to swell at will, and at the time it is more and more common to see celebrities promote projects related to crypto. We know today that it was not the idea of the century.
In this particular atmosphere, Ryan Felton, presenting himself as a multi-talented audiovisual producer, debuts in August 2017 to propose a revolutionary ICO: the goal would be to launch a decentralized platform that would allow all actors in the ecosystem to win. their daily bread more just, on a kind of Netflix on the blockchain, which would put small and big on an equal footing. You can tell, it was ambitious to say the least … and everything did not go exactly as planned.
So investors are suing Ryan Felton but also rapper T.I for leading a good old Pump & Dump of families at their expense.
When T.I., Kevin Hart, Tony Gallippi or Mark Cuban see their associated names
The unfolding of events looks like a bad Hollywood movie, precisely. Ryan Felton, described as “a regular at courts and trials” in the ICO complaint, would have cleverly manipulated his world, profiting from the participation in T.I.’s project and the momentary association of some of his famous friends.
— T.I. (@Tip) August 20, 2017
Indeed, a few days before the launch of the ICO, Ryan Felton has cracked an ad for his (dear) investors: the rapper T.I was joining the adventure, to disrupt Hollywood. It is therefore natural that the hype began to rise.
But it was not enough. Then Ryan Felton later announced that Tony Gallippi, co-founder and president of BitPay, was joining the team as an “advisor”. It turns out that ultimately, Tony Gallippi had only bought for $ 500 FLiK tokens. But of course, this information never reaches the official Telegram group.
According to the indictment, Ryan Felton has also created fake accounts on social networks to suggest that Mark Cuban, the billionaire businessman already investor in Netflix, joined the adventure. Enjoying to meet Cuban during social events, he would have taken the opportunity to make a photo in his company and use it in his fallacious business.
Kevin Hart, the American comedian, has also been associated with this ICO, since he has posted on his social networks messages of praise about the “new project” of his friend TI Felton was not deprived for the then present as a future leader of FLiK, which of course has never been verified later.
As if that was not enough, Ryan Felton let go to announce in October 2017 that negotiations for commercial partnerships with Liongate or the entertainment services of the soldiers of the US Army were in negotiation.
But all the most beautiful stories also have an end. Especially when they are finally built on sand: all this was a lie.
Sold at the ICO at an unbeatable price of $ 0.06, the FLiK token has progressively increased to a maximum of $ 0.21. Yet Felton announced in his Telegram group a valuation likely to nearly $ 15 the token in the year. Yet another alert, but unsuspecting investors have not seen. And then, as you can imagine, it was the drama.
Today, Ryan Felton disappeared from radar by abandoning the baby in a strange assignment in 2018 to a newly created ghost company, obviously neither Liongate nor the US Army had any connection with this project, Kevin Hart is not never intervened directly in the commercial projects of FLiK and Mark Cuban did not abandon Netflix to join this new revolution.
$ 2 million lost, 5 found?
The various investors have ultimately lost nearly $ 2 million in this dark affair. For example, Aurélien Béranger, a leading French plaintiff, had invested $ 581,000 at the height of the hype. On August 3, the FLiK token had seen its “value” melt at $ 0.008. Today, the token is worth nothing, not surprisingly, since there is no longer any market and the project is in a state of brain death … If he has never lived.
The plaintiffs are seeking $ 5 million in compensation, seeking recognition that all conditions are met to categorize FLiK’s ICO as a fraudulent sale of unregistered securities.