Hart In Trouble Over Failed Flik ICO Pump And Dump Scheme
The world's second best-paid comedian Kevin Hart has been named as a defendant in a civil suit that has been brought against the owner of the Flik ICO. The class-action lawsuit was filed in November of last year, with allegations that the owners of the Flik company having had initiated a “pump and dump” scheme. The owners are believed to be Ryan Felton, a music producer, and musician and rapper Clifford Harris.
Lawsuit Amended Last Week To Include Hart
The aggrieved investors amended the lawsuit last week Friday to include Kevin Hart, whom they allege was complicit in the alleged fraud and contributed knowingly to it. The 25 strong investors say that they had handed over approximately $1.3 million for tokens that had turned out to be worthless. They claim that the tokens were sold as unregistered securities in late 2017 and that they were “duped” by Felton and T.I., and have now included Hart as central to their argument.
The argument goes that the investors were drawn into the ICO on the strength of the celebrity endorsements that T.I., Ryan Felton and Kevin Hart were peddling. They further allege that a series of social media posts promised a return of 25000% on the initial investments.
Representatives of Hart, Felton, and Harris have not been answering any news outlets since the lawsuit was filed, though Harris has stated on many occasions that he had nothing to do with the Flik ICO. His attorney Albert A. Chapar told news outlets when the lawsuit was filed initially, that his “client did not receive a single dollar from Felton” adding that Mr. Harris did not have any legal ownership of the company in question. However, there is a deleted tweet where Harris, T.I., referred to Flik specifically as HIS new ICO.
The token sale proceeded as planned and reach a price of $0.21 from an initial price of $0.06. After the price of $0.21 had been achieved, the court documents state that Felton and Harris had dumped their tokens on the secondary market and simply went AWOL. However, there is more to the story according to the court documents.
It is further alleged that Felton has attempted to some trickery to clear his name of the Flik ICO by buying a shelf company called Skyblock Media Group, LLC. This company went on to “acquire” Flik at the same time as Felton was telling investors that he had nothing to do with the new company.
Flik Is Nonexistent On The Internet Currently
There are very few if any traces of Flik online. The Flik Facebook page, the Flik website, and Skyblock Media's webpage have all been taken down. Flik's twitter handle is still open but it has been scrubbed of all tweets and is now private. The problem is that Kevin Hart's social media posts promoting the Flik ICO are all still online.
— Kevin Hart (@KevinHart4real) September 16, 2017
The tweet shows that Hart definitely thought that Flik was Harris's venture, while he posted a picture of himself with Harris on Facebook in September of 2017. The caption of the Facebook photo stated that he would help T.I. spend all the money that he (T.I.) would make from his new venture (Flik). The aggrieved investors claim that Hart materially aided Harris and Felton with his social media presence and thus was aiding in the fraud. The investors are seeking at least $7 million in damages from Hart alone for his role in the failed ICO. There is also talk of Felton having encouraged talk about Hart becoming the “face” of Flik int he community without bothering to correct anyone.
Whatever the outcome, this is only one such case among many that have been taken to court since the ICO hype died down. The only reason many are hearing about this one, in particular, is because of the mega-popularity of Kevin Hart who may or may not be directly involved. There are many more people who have lost money to people who might as well be invisible and those people are why ICOs are not going strong anymore.