Atlanta filmmaker Ryan Felton has pleaded guilty to charges indicating he ran a cryptocurrency scam in which he stole more than $2.5 million from crypto investors.
The filmmaker, indicted for his activities in the US around crypto projects Flick and Coinspark, is facing a jury trial and reportedly pleaded guilty to four days into the proceedings.
Felton faces multiple charges including wire fraud, securities fraud and money laundering, the US Department of Justice disclosed in a Press release,
Scam through 2017 ICO
US Attorney Ryan Kay Buchanan said in the release that Felton’s fraud scheme began during the initial coin offering boom in 2017.
According to allegations, the creator used a massive interest in cryptocurrencies to promote an ICO for FLiK at the time, accusing victims that the project was set to rival and even surpass streaming giant Netflix. Was done
Massive interest in the public sale for the coin came when Felton falsely linked FLiK to a prominent American rapper and actor, misrepresenting the person as a co-owner.
He also lied that FLiK has a distribution agreement with the US military and content licensing with a major Hollywood studio. He then scammed investors of approximately $2.4 million, before proceeding to divert further funds into his personal account from Coinspark, a cryptocurrency exchange that had raised over $200,000 from investors.
lavish lifestyle
According to prosecutors, Felton used the money to fund his “extraordinary lifestyle,” purchasing the $1.5 million residence paid for in a full-cash transaction. He spent $30,000 on a 2007 Ferrari 599 GTB for $180,000, a Chevy Tahoe for $58,250, and diamond jewelry.
Buchanan said, “The defendant used 21st century technology to perpetrate an age-old fraud: lied to investors to steal their money and raise money for his lavish lifestyle.”
He believes that Felton’s conviction will likely help deter others from seeking such avenues to get money from investors.
Felton, 48, awaits sentencing, the DOJ said in a press release.