Hollywood producer pleads guilty to crypto pyramid scheme

Hollywood producer pleads guilty to crypto pyramid scheme

Hollywood producer Ryan Felton, who promoted the scam project FLiK, pleaded guilty to 24 counts. Using fakes and a rich imagination, the man defrauded crypto-investors of more than 2.5 million.

The official statement from Minjust (DOJ) states that Felton promoted an ICO (initial investment in tokens) for the streaming service FLiK in 2017.

In his videos and interviews, the producer promised that the new platform would be the “Netflix killer.” And he even invented the fake that the co-owner of FLiK is a famous rapper and actor from Atlanta.

Felton voiced other fakes to attract investors. He told investors that the U.S. military had agreed to launch FLiK, that the company had almost finalized all the necessary licenses, and had agreed to cooperate with television studios. None of this was true.

At the end of the ICO round, the producer drained his 40 million coins. As a result, the value of the token plummeted, investors were at a loss, and the project shut down.

Felton had already managed to spend the profits from the sale of tokens (about $2.4 million). He bought a $1.5 million mansion, a Ferrari and diamonds with them.

In 2018, Felton appeared in another scam project, the CoinSpark exchange.

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