Prominent Lawyer Talks About FLiK Case Development As Rapper TI is Sued for Token Promotion

A prominent U. S.-based lawyer, Stephen Palley, who works at Anderson Kill, has recently decided to talk about the FLiK token, a court case that is happening right now. Unlike most of the tokens which are being talked about in the crypto space today, FLiK was backed by a celebrity, which is one of the main reasons why people are paying attention at it right now.

The U. S. rapper Clifford Joseph Harris Jr., also known as T.I.P., is currently being sued in $5 million USD because he promoted the FLiK token together with his partner Ray Felton.

A total of 25 people who were allegedly burned by their investments have claimed to invest at least $1.3 million USD collectively in the tokens which were backed by the celebrity. They affirm that the rapper used the money in order to increase the value of the tokens, however, their price crashed after the coin was actually launched in the market.

The project was very high-profile at the time, so other celebrities such as Mark Cuban and Kevin Hart were also associated with it. However, they do not seem to be the targets of the current lawsuit, only the famous rapper.

Stephen Palley affirmed that there were developments regarding this case such as the fact that the case took a hit in court. They affirmed that the tokens, which were said to be utility tokens, were actually securities because they did not pass the Howey Test.

The Howey Test was created in order to discover if some kind of investment can be considered a security. In the law of the United States, securities offer extra protection for the clients.

There is also the issue that the sale of unregistered securities is a crime in the U. S., so if the case against the company is successful, this could mean that the creators of the token can be accused of creating unlawful securities, too.

He also affirmed, however, that there is a time problem in the case because this kind of case has to be brought to court in less than a year after the sale and the clients took too much time, so the case is far from complete at this time.

The lawyer concluded that nothing in the case is actually any surprise at all as “form was never going to be exalted over substance”.

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