Hollywood producer from Atalanta, Ryan Felton, has pleaded responsible to obtaining $2.4 million by scamming cryptocurrency traders.

Felton, charged with a number of counts of wire fraud, securities fraud, and funds laundering, admitted to channeling the resources in direction of funding his lavish way of living, the Section of Justice mentioned in a press release on July 21. 

The department observed that the accused attained the dollars by selling an Preliminary Coin Providing for a streaming platform dubbed FLiK with the promise the enterprise experienced the likely to surpass Netflix (NASDAQ: NFLX).

Notably, the income was wired to his account, where by Felton opted for all-money purchases of a $1.5 million residence, a $180,000 Ferrari, a $58,250 Chevy Tahoe, and roughly $30,000 in diamond jewellery.

Plot to attract a lot more investors 

It is worth mentioning that to entice far more buyers the producer is alleged to have lied that a popular Atlanta rapper and actor also backed the project as co-proprietor. Nonetheless, the explained rapper was not portion of the project. 

Interestingly, inventors were being lied to that the U.S. army was also on board by agreeing to distribute the streaming platform to services users.

Also, the platform promoted at the height of the 2017 ICO increase also claimed to be finalizing licensing specials with major movie and television studios.

In the end, Felton dumped extra than 40 million FLiK cash on trading markets, with the price of FLiK cash plunging drastically. 

“The defendant made use of 21st-century technologies to perpetrate an age-old fraud: lying to investors to steal their revenue and fund his possess lavish lifestyle. Felton’s conviction should serve as a warning to everyone who seeks to capitalize on rising technologies to victimize other folks,” mentioned U.S. Legal professional Ryan K. Buchanan. 

Crypto exchange scam 

Moreover, in 2018, Felton also promoted yet another ICO for CoinSpark, a cryptocurrency trading trade. He promised traders that Spark coin buyers would obtain 25% of the investing exchange’s earnings in dividends. Inspite of an earlier guarantee, the firm was never audited. 

The DOJ further alleged that Felton also pretended to be a likely…