cryptocurrency
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Cryptocurrency crime is on the rise. Two men allegedly kidnapped and tortured an Italian millionaire over the digital currency.
As reported by Newsweek, a man was lured back from Italy into the United States by former business partners only to be subjected to being held against his will and other forms of abuse. The victim claims that he was held captive since May 6 by John Woeltz and other individuals. While under captivity he says he was physically assaulted, shocked with electrical wires, forced to use cocaine and was also psychologically tortured. The victim also claims he was threatened with a gun and was also hung off a roof after he refused to give the suspects his Bitcoin password.
Luckily, the 28-year-old man was able to escape on what he had been told would be his last day alive. On Friday (May 23), around 9:30 a.m. he made his exit out of the ritzy lower Manhattan residence and was able to find an on-duty traffic officer who offered him immediate assistance. The victim was eventually admitted to Bellevue Hospital where he was listed in stable condition. Since then local police have investigated the matter and have charged John Woeltz with second-degree assault and one count each of first-degree kidnapping, first-degree unlawful imprisonment, and criminal possession of a firearm.
Beatrice Folchi, Woeltz’ assistant, has also been charged with kidnapping and unlawful imprisonment. The New York Post caught up with her and while she did not have much to say about the open case, she explained that she had not been arrested and that “everything is going to be told but with a lawyer.”
The third suspect has since turned himself in. According to AP News, William Duplessie surrendered himself to police on Tuesday (May 27). The 32-year-old is also a cryptocurrency investor who is said to have spent his holiday weekend in the affluent Hamptons area. Duplessie has been charged with assault, kidnapping, unlawful imprisonment and criminal possession of a firearm.
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Crypto proponent Snoop Dogg is officially partnering with Tune. FM as the face of the Web3 music streaming platform, Billboard can exclusively report. The first project being streamed under the new partnership is the newly released single “Spaceship Party.”
The rapper/entrepreneur also plans to move more of his catalog, including his Death Row Records material, to Tune.FM.
In publicly announcing the switch, Snoop bluntly states in a comment given to Billboard, “I don’t f**k with Spotify anymore. I’m only on Tune.FM.”
Trending on Billboard
Tune.FM styles itself as a decentralized Web3 streaming platform focusing on transparency, security and fairness for artists through blockchain technology. The platform’s native cryptocurrency is something called JAM. Unlike traditional services, it says it provides instant micropayments per second streamed. Users can sign up and start streaming without needing blockchain knowledge. Upon registration, a JAM wallet is automatically created, allowing users to spend JAM tokens on streaming, tipping artists and unlocking exclusive content.
Tune.FM says its AI-driven discovery algorithm promotes independent artists organically, bypassing paid placements. Additionally, artists can tokenize music rights, allowing fans to invest and earn royalties.
Snoop Dogg’s decision to partner with the platform came after meeting Tune.FM founder/CEO Andrew Antar at the Crypto Ball prior to President Trump’s inauguration in January.
“We are thrilled to welcome Snoop Dogg as the face of Tune.FM,” Antar tells Billboard. “Snoop is the OG pioneer who is always on the cutting edge of technology and new ways of doing business. He totally gets it, and we are ready to take on the world together.” A classically trained musician, Antar also plays violin on “Spaceship Party.”
Tune.FM
Cordell Broadus
Beyond moving his catalog to Tune.FM, Snoop Dogg is planning to host fan experiences and giveaways such as a private event at his house and VIP prize tiers. Additional plans include integrating Tune.FM into live events and exclusive concerts, as well as bringing unique artist-fan interactions and collectibles to the platform’s marketplace.
Tune.FM is also in talks with major labels (Universal, Sony), major distributors and high-profile artists to bring more exclusive content to the platform. According to a Tune.FM spokesperson, “Tune.FM operates under non-exclusive licensing agreements, enabling us to unlock new revenue streams for under-monetized catalogs and artist IP on both our streaming platform and marketplace.”
The rep declined to disclose specifics about any deals, but added, “we can share that major distributors and labels are increasingly coming on board to upload catalogs that have long been under-monetized.”
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Source: NurPhoto / Getty / Donald Trump
You can always count on Donald Trump and his family to find a new way to scam.
Fresh off the latest alleged “assassination attempt” on his life, which he wasted no time fundraising on, the disgraced former president hit an X Space for a 40-minute interview where he rehashed his greatest hits on the latest attempt on his life, the border, the evil forces conspiring against him and his granddaughter’s ability to speak foreign languages.
He touched on all of that in an X Space where he was supposed to speak about his latest scam; oops, we mean business venture, a new “crypto platform.”
When he finally got to the point, he touched on World Liberty Financial, which, according to a statement shared on his X account per The Verge’s reporting, “Trump’s new decentralized finance project is to drive “the mass adoption of stablecoins and decentralized finance.”
Even The People Involved Can’t Explain This Mess
According to the website, Trump or any of the other people involved in the Space on X on Monday night did a sh*tty job of explaining what World Liberty Financial is.
Helping to try to explain what the hell the platform is, Corey Caplan, founder of some sh*t called Dolomite, another “decentralized lending platform,” is also working as an adviser on Trump’s latest attempt to scam people out of money and fatten his wallet.
In his explanation, Caplan said World Liberty Financial would “sell and otherwise distribute governance tokens called WLFI.” He notes that sales of the token will be limited to “certain persons who would be eligible to participate in transactions that are exempt from registration under US federal securities law.”
What made the whole thing even funnier was Barron Trump, the family’s expert on Crypto, not being present when it was his turn to speak.
Per The Daily Beast:
Trump’s youngest son Barron, 18, was nowhere to be found when it came time for him to speak, some two hours into the meandering promotional for World Liberty Financial, which even Trump’s crypto sector allies reportedly think is a stupid idea.
“He’s not here anymore,” said Farokh Sarmad, the crypto entrepreneur who hosted the livestream on X. “We took too long. We’re gonna try and get him back.” It would have marked Barron’s first major speaking role in public.
“Damned teenagers,” joked Trump’s eldest child, 46-year-old Donald Jr., who sat in on the livestream along with his 40-year-old brother, Eric.
The gallery below shows more reactions to Donald Trump and his son’s latest scam.
1. Ruh Roh
4. Sounds about right
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Tekashi 6ix9ine may be one of the most hated men in the United States, but the rapper-turned-snitch still has a very healthy fanbase overseas and is looking to cash in on his popularity by releasing branded cryptocurrency.
According to HipHopDX, the “Fefe” rapper traveled to Romania to take the stage at the annual Beach Please! music festival. While visiting the European country Tekashi 6ix9ine took to Instagram to announce he was releasing a new “Dummy Coin” for his fans to invest in.
In the now-deleted post (that disappeared quickly), Tekashi explained that there were some open slots for investors, and for those who were willing to buy into his new venture, there would be a chance to link up with the rapper-turned states evidence.
Per HipHopDX:
“We just got to Romania,” he began. “I’m super grateful for the ability to travel. Romania, we’re live tomorrow at Beach, Please! I want to apologize to all my fans for being very disconnected with you guys, but I got some great news — I just released a Dummy Coin.
“For the first 2,000 holders who buy into the Dummy Coin, you will be selected to do a meet and greet here in Romania […] Also, we’ll pick three select few to join us on stage for the last song, which is ‘GUMMO.’”
Sounds like Tekashi might be in dire need of money if he’s resorting to such tactics to drum up some cash. As to whether anyone invested in his “Dummy Coin” and met and chilled with him, that’s anyone’s guess.
Tekashi’s latest “business venture” comes months after the IRS raided his home and relieved him of some very expensive automobiles to satisfy his debt to Uncle Sam. If Tekashi is out here making bank on cryptocurrency, don’t be surprised if the IRS finds a way to come for those dollars too. They can be ruthless when they want to.
What do you think about Tekashi 6ix9ine’s “Dummy Coin”? Is he out here swindling his fans? Check out his performance clip in Romania, and sound off in the comments section below.
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Photo: Getty
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Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange, was found guilty of the seven charges levied against him in the explosive fraud case. According to reports, Bankman-Fried could face over 100 years in prison if federal sentencing guidelines are followed and there is still another trial to come next year.
For five weeks, Sam Bankman-Fried, 31, stood trial at the Daniel Patrick Moynihan U.S. Courthouse in Manhattan, N.Y. and this past Thursday (November 2), the co-founder of FTX and Alameda Research heard the guilty verdict on fraud, conspiracy, and money laundering charges.
As reported by The Washington Post, Bankman-Fried was found guilty of two counts of wire fraud, four counts of conspiracy to commit fraud, and one count to commit money laundering. If all sentencing guidelines are followed, Bankman-Fried faces several decades in prison. Sentencing will take place on March 28.
“We respect the jury’s decision. But we are very disappointed with the result,” defense attorney Mark Cohen shared in a statement. “Mr. Bankman Fried maintains his innocence and will continue to vigorously fight the charges against him.”
According to prosecutors in the matter, Bankman-Fried allegedly swindled almost $10 billion from the victims of the fraud scheme as FTX was reportedly using customer contributions to fund Bankman-Fried’s lifestyle and purchases.
“The cryptocurrency industry might be new; players like Sam Bankman-Fried might be new. But this kind of fraud, this kind of corruption, is as old as time, and we have no patience for it,” U.S. Attorney Damian Williams said of the case.
Bankman-Friend is the son of Stanford University professors Joseph Bankman and Barbara Fried, both of whom attended the trial. Fried’s mother was said to be wrought with emotion after hearing the verdict against her son.
According to those who closely followed the case, the paper trail and testimony from former romantic partner and the former CEO of hedge fund Alameda Research, Caroline Ellison, along with accounts from former FTX executives, helped sink Bankman-Fried’s defense. But it appears that it was Bankman-Fried himself who didn’t fare well during intense cross-examination sessions.
Sam Bankman-Fried is due in court again on
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Photo: Michael M. Santiago / Getty
As the tech hype shifts from crypto to AI, the Web3 space is left trying to figure out sustainable use cases for NFTs and blockchain technology. Progress is being made through shared streaming royalties, Web3 fan clubs that unlock exclusive content, and a new wave of independent artists finding their first supporters and early fans by releasing their music on-chain.
However, Web3 still attracts cash grabs and, sometimes, outright scams. This mix of good and bad was reflected in April as many independent artists stood shoulder to shoulder with Snoop Dogg in terms of sales — but the month was marred by a rushed Soulja Boy NFT that was delisted from major platforms.
Overall, April was the worst month for NFT volume (in ETH terms) on the popular sales platform OpenSea since July 2021 and that weakness was reflected in the music NFT market. Volume across the 10 biggest projects netted 278.4 ETH, down from 381 ETH in March. In dollar terms, it’s $509,714, compared to March’s $697,393. Based on analysis of sales data from 19 different NFT platforms, independent releases combined with secondary sales volume on OpenSea, here are the 10 biggest-selling music NFTs and collections in March 2023.
1/ Soulja Boy – 3D Game NFT (Delisted by OpenSea)Monthly trading volume: 114 ETH ($208,734)Primary sales (March): N/ASecondary sales: 114 ETH ($208,734)Drop date: April 6
After Soulja Boy was charged in March for promoting cryptocurrencies without disclosure by the SEC, the rapper dropped a series of NFTs, with one collection removed by OpenSea for copyright infringement.
Soulja Boy launched a collection of 500 3D NFTs which promised to unlock exclusive extras in his upcoming video game. The NFTs sold out within hours, generating 68 ETH ($124,508), but the collection was later taken down by leading NFT platform OpenSea because the artwork featured the Ferrari logo — a copyright infringement. The NFTs still exist on the Ethereum blockchain but cannot be traded or sold by holders. A second collection followed (without the Ferrari logo) generating 10 ETH ($18,310) volume, and a third collection of pixel art generated 36 ETH ($65,916).
The NFT community hit back at Soulja Boy, not only for the fumbled NFT projects but for pocketing as much as $730,000 over recent years for promoting crypto and NFTs — many of which turned out to be scams.
2/ Snoop Dogg – Various collectionsMonthly trading volume: 39.896 ETH ($73,049)Primary sales (March): 5.775 ETHSecondary sales: 34.121 ETHDrop date: various
A rare Snoop Dogg NFT — the “golden egg” from his XYZ track — sold for 20 ETH in April, the highest price paid for a single music NFT on Web3 music platform Sound.xyz. The “golden egg” is a unique 1/1 collectible associated with the song within the bigger collection of 10,000. Golden eggs are often valued highly by music collectors on the platform. Snoop Dogg also dropped another song, Let Me Hit That, on Sound.xyz last month, netting a further 5.74 ETH ($10,509), while his “Bacc on Death Row” NFT collection generated 14 ETH ($25,634) in trading volume on OpenSea.
View the collection on Sound.xyz.
3/ DeafbeefMonthly trading volume: $61,314Primary sales (March): $46,000Secondary sales: $15,314Drop date: March 2021
Deafbeef is a music project valued like fine art by many in the Web3 space. It’s a collection of generative music, created by an algorithm, and coded into existence on a 10-year old computer by musician Deafbeef. Minted straight to the Ethereum blockchain at the moment of creation, it represents an experimental art form only possible through Web3 and it’s considered one of the most important early NFT experiments. These rare items are often referred to as “grails” and thought of like art pieces. A single edition changed hands for $46,000 last month, while Deafbeef also sold a new piece at auction for $15,314.
View the collection on OpenSea.
4/ KINGSHIP – “Keycards”Monthly trading volume: 23 ETH ($42,113)Primary sales (March): N/ASecondary sales: 23 ETHDrop date: May 2022
The Bored Ape Supergroup has become a permanent fixture of the monthly roundup with another month of strong trading volume on OpenSea through April. KINGSHIP recently launched a way for holders to generate rewards called ‘Crowns’ by participating in the community, which they can use to buy exclusive items and NFTs via a new auction system.
View the collection on OpenSea.
5/ PLS&TY – “New Color”Monthly trading volume: $37,229Primary sales (March): $37,229Secondary sales: N/ADrop date: April 27
PLS&TY is a prolific EDM producer with hundreds of millions of streams across his music on YouTube and Spotify. He’s also an early adopter in the NFT space. The producer’s latest collection on GALA Music — a Web3 music platform that Snoop Dogg called his home for Death Row Records featuring several NFTs drops from artists on the label — generated $37,229 with a collection of 300 audiovisual NFTs.
View the collection on OpenSea.
6/ X Li – “think i’m in love with you”Monthly trading volume: 20.121 ETH ($36,841)Primary sales (March): 20.121 ETHSecondary sales: N/ADrop date: April 26
Independent LA singer X Li exploded onto the Web3 music scene in April with a heartbreak ballad — a departure from the typical EDM and hip- hop sounds that dominate the space. The track quickly rocketed to the top three3 most collected songs on Sound.xyz with over 4,000 mints. X Li has previously worked with Sony Music Entertainment China but is now embracing Web3 and building a music community called Liberal Mafias.
View the collection on Sound.xyz.
7/ Violetta Zironni – “Another Life”Monthly trading volume: 11 ETH ($20,141)Primary sales (March): N/ASecondary sales: 11 ETHDrop date: Feb. 20
Italian singer-songwriter Violetta Zironi launched an NFT collection, Another Life — an EP encompassing five tracks and 5,500 unique profile picture illustrations. Holders get access to virtual shows, live concerts and the ability to use the songs for their own projects. The project launched in February but continued to generate strong secondary sales through April.
View the collection on OpenSea.
8/ LNRZ – “Satellites”Monthly trading volume: 6.3 ETH ($11,535)Primary sales (March): 6.3 ETHSecondary sales: N/ADrop date: April 21
LNRZ is a music collective founded by Reo Cragun, a pioneering artist in the Web3 music space and vocalist on Flume’s EP “Quits.” The collective is known for releasing music NFTs every week through curated drops with select artists, but in April they released their first original body of work. Satellites is a six-track album featuring five emerging musicians that came together at a songcamp in Las Vegas. The LNRZ community voted on the price, supply and rarity structure of the NFT drop, which sold out 1,250 editions in 24 hours.
View the collection on Sound.xyz.
9/ Culture Code, Araya & RUNN – “After All”Monthly trading volume: ~$9,697Primary sales (March): ~$9,697Secondary sales: N/ADrop date: April 10
After All is a dreamy electronic track that racked up 800,000 streams since its release in February. DJ and producer duo Culture Code sold a percentage of streaming royalties in the track via music rights platform Royal. The pair sold approximately 100 gold tokens offering 0.1228% ownership each, and three diamond tokens at $899 each offering 1.6204%.
View the collection on Royal.
10/ Illenium – “Illenium Fire, Ice & Ash” digital deluxe albumsMonthly trading volume: $8,908Primary sales (March): $8,908Secondary sales: N/ADrop date: April 27
DJ and producer Illenium entered the top 10 in March with a Web3 access pass that granted access to a fan club powered by tech company Medallion. He returned in April with the release of a digital deluxe album, available in three limited editions, only to the fan club. Fans that own the first two editions can unlock the ultra-exclusive third edition, or two fans can team up to unlock the third.
Only available to fan club members.
Methodology: The chart was compiled using data from primary music NFT sales across 19 different NFT platforms, independent releases and combined with secondary volume data from OpenSea. Data was captured between April 1 – April 30, 2023. Conversion rates from crypto to US dollars were calculated on April 30.
Disclaimer: The author owns NFTs from LNRZ and Snoop Dogg, however, the above list is based purely on sales data.
March saw the launch of two Web3 record labels, a free NFT from Grimes and NFT streaming royalties tied to several viral hits. Overall, the crypto market has bounced back with Ethereum now 100% higher than its lows of last year, injecting some optimism back into the crypto economy.
However, it was a weaker month for music NFTs — a common symptom of the NFT market when crypto prices are trending higher as many buyers prefer to hold onto their ETH as it gains value. Volume across the 10 biggest projects netted 381 ETH compared to 1,016 ETH in February. In dollar terms, it’s $697,393 compared to February’s $1.6 million. Based on analysis of sales data from 19 different NFT platforms, independent releases combined with secondary sales volume on OpenSea, here are the 10 biggest-selling music NFTs and collections in March 2023.
1/ Helix Records Genesis PassMonthly trading volume: 137 ETH ($250,710)Primary sales (March): ~91 ETHSecondary sales: 46 ETHDrop date: March 10
Patrick Moxey, founder of PayDay and Ultra Records, has launched a new label with Web3 at its heart. Helix Records sold 3,333 NFT genesis passes in March, granting access to the inner workings of the label. Holders can pitch their music to Helix Records’ A&R team, get access to free tickets and claim a free NFT of Marshall Jefferson’s iconic house classic ‘Move Your Body.’ Moxey aims to onboard the label’s entire roster of dance artists into Web3.
View the collection on OpenSea.
2/ Grimes – Gen-1 AvatarsMonthly trading volume: 60.7 ETH ($111,081)Primary sales (March): 60.7 ETHSecondary sales: N/ADrop date: March 24
To celebrate a performance at Ultra Festival, Grimes dropped a free NFT on Web3 platform Zora in March. The Grimes Gen-1 avatars will unlock quests, exclusive music and other digital experiences. More than 78,000 were minted in a 7-day window. Although the NFTs were free, each edition was subject to a 0.000777 platform fee which generated a total of 60.7 ETH.
View the collection on Zora.
3/ Dreams Never Die – Founders PassMonthly trading volume: 46 ETH ($84,180)Primary sales (March): ~40 ETHSecondary sales: 6 ETHDrop date: March 15
Dreams Never Die is a record label founded by Chad Hillard, credited for discovering Billie Eilish and breaking “Ocean Eyes” through his music blog HillyDilly when the track had less than 1,000 plays on SoundCloud. Fast forward eight years and Hillard’s record label Dreams Never Die has established itself deeply in Web3 culture.
The label was the first to release a debut single as an NFT via their flagship artist Sloe Jack and last month launched a thousand Founders Passes. The NFT gives holders the opportunity to participate in the label as scouts and other roles, as well as get direct feedback on music.
View the collection on OpenSea.
4/ KINGSHIP – Key CardsMonthly trading volume: 37 ETH ($67,710)Primary sales (March): N/ASecondary sales: 37 ETHDrop date: July 2022
The Bored Ape supergroup launched a new initiative in March called Crowns. Members of the KINGSHIP community can earn Crowns by helping out new members, retweeting social posts, sharing music and engaging in the Discord server. The Crowns can then be redeemed for items in the upcoming KINGSHIP digital store.
View the collection on OpenSea.
5/ Violetta Zironi – Another Life Monthly trading volume: 30 ETH ($54,900)Primary sales (March): N/ASecondary sales: 30 ETHDrop date: Feb. 20
Italian singer-songwriter Violetta Zironi recently launched a new collection, Another Life — an EP encompassing five tracks and 5,500 unique profile picture illustrations. Holders get access to virtual shows, live concerts and the ability to use the songs for their own projects. The project launched in February but continued to generate strong secondary sales through March.
View the collection on OpenSea.
6/ Maddix – Heute NachtMonthly trading volume: $36,990 Primary sales (March): $36,990Secondary sales: N/ADrop date: March 15
Producer Maddix released Heute Nacht in October of last year and it quickly turned into a viral hit, racking up 20 million Spotify streams in five months. In March, the track was released as a collection of 260 NFTs via Royal, offering a percentage of streaming royalties in the hit song. 250 ‘Gold’ tokens give holders 0.0295% of royalties while 10 ‘Diamond’ NFTs offer 0.262% ownership.
7/ David Guetta, Martin Garrix, Romy Dya, Jamie Scott – So Far AwayMonthly trading volume: $30,781Primary sales (March): $28,000Secondary sales: 1.52 ETH ($2,781)Drop date: March 28
With 352 million streams, So Far Away dropped as a collection of 200 NFTs in March, each offering 0.01% ownership in the track. The NFT was released via Anotherblock which unlocks streaming royalties in major hits, usually via a producer or songwriter’s share rather than the lead artist. In this case, the NFT is released through featured artist Romy Dya.
8/ Reo Cragun – SpentMonthly trading volume: 15.6 ETH ($28,548)Primary sales (March): ~7.5 ETHSecondary sales: 7.9 ETHDrop date: March 28
Rapper and producer Reo Cragun has been at the forefront of independent Web3 music for the last 18 months, previously appearing in this chart for his EP Criteria with Daniel Allan in December. Cragun returned in March with a new single “Spent.”
The track was the first to use a new drop format on Web3 music platform sound.xyz called Sound Swap. The mechanism begins with a familiar 24-hour mint period where fans can buy as many editions of the song as they want for 0.005 ETH (~$7). However, when the 24 hour period ends, the price rises steadily for each additional purchase.
If there is sufficient demand and the price rises, existing collectors can instantly sell at the current price — an innovative upgrade from trying to trade or sell NFTs on a secondary market like OpenSea. The track generated 1,500 mints in the first 24 hours and an additional 350 mints using the Sound Swap mechanism.
View the collection on OpenSea.
9/ Illenium – Phoenix Family Founders PassMonthly trading volume: $28,000Primary sales (March): $28,000Secondary sales: N/ADrop date: March 29
DJ and producer Illenium launched a Web3 fan club in March called The Phantom Family, powered by tech platform Medallion. Once inside, fans could mint the Phoenix Family Founders Pass for $25 each, giving them access to a digital jersey, fast-track access to merchandise and exclusive content. Illenium sold 1,132 in a two-day window.
View the collection on OpenSea.
10/ Wes Ghost – SleepwalkingMonthly trading volume: 12.6 ETH ($23,058)Primary sales (March): 10.7 ETHSecondary sales: 1.9 ETHDrop date: March 16
Wes Ghost exploded onto the Web3 music scene in March with a debut single “Sleepwalking” — a pop-punk electronic crossover anthem. Using an NFT character from the “Kid Called Beast” NFT collection to front the project, Wes Ghost sold 2,351 editions of the track by tapping into dozens of different NFT communities through giveaways and cross-collaboration.
View the collection on OpenSea.
Methodology: The chart was compiled using data from primary music NFT sales across 19 different NFT platforms, independent releases and combined with secondary volume data from OpenSea. Data was captured between March 1 – March 31, 2023. Conversion rates from crypto to US dollars were calculated on March 31.
Disclaimer: the author owns NFTs from Reo Cragun and Dreams Never Die, however, the above list is based purely on sales data.
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Source: Allen Berezovsky / Getty / Soulja Boy
Remember when crypto was all the rage? Now celebs who were out here pushing them are getting in T R O U B L E.
The SEC is cracking down on celebrities nefariously pushing crypto on normal people. Lil Yachty, Soulja Boy, Ne-Yo, Akon, Jake Paul, Lindsey Lohan, Austin Mahone, and adult film actress Kendra Lust were all hit with charges by the SEC for illegally promoting cryptocurrency.
According to Pitchfork’s reporting, everyone has agreed to pay a fine of $400K in “disgorgement, interest, and penalties” to settle the charges without admitting or denying the SEC’s findings. Mahone and Soulja Boy have yet to pay the funds.
The SEC also charged crypto pusher Justin Sun and three of his companies—Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. (formerly BitTorrent Inc.) for the unregistered offer and sale of Tronix and BitTorrent. Sun is also in trouble for allegedly violating federal securities laws by plotting a scheme to inflate Tronix’s trading volume artificially.
Sun allegedly duped investors into buying Tronix and BitTorrent by using celebrity influencers and throwing them money to promote what the company was offering while telling them not to spill the beans on how much they were receiving in compensation.
Per the SEC:
While we’re neutral about the technologies at issue, we’re anything but neutral when it comes to investor protection. As alleged in the complaint, Sun and others used an age-old playbook to mislead and harm investors by first offering securities without complying with registration and disclosure requirements and then manipulating the market for those very securities. At the same time, Sun paid celebrities with millions of social media followers to tout the unregistered offerings, while specifically directing that they not disclose their compensation. This is the very conduct that the federal securities laws were designed to protect against regardless of the labels Sun and others used.
These latest celebs join the likes of T.I. who the SEC hit with a charge in 2020 for pushing bootleg initial coin offerings from a company called FLiK. In 2018, Floyd Mayweather and DJ Khaled felt the SEC’s wrath, with the boxer coughing up over $600K and the music producer having to pay over $150K and agree to not “promote any securities, digital, or otherwise,” for multiple years.
Kim Kardashian also got in trouble for the crypto jig as well and had to come out of her pockets. It was fun, but the SEC is not playing anymore.
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Photo: Allen Berezovsky / Getty
Lil Yachty, Lindsay Lohan, Ne-Yo, Soulja Boy and Austin Mahone are among a number of celebrities who have been charged by the Securities and Exchange Commission for peddling crypto currencies “without disclosing that they were compensated for doing so and the amount of their compensation,” according to an SEC announcement Wednesday (March 22).
The artists were charged as part of a larger investigation into crypto companies Tron Foundation Limited, Bit Torrent Foundation Limited, Rainberry Inc and their founder Justin Sun for the “unregistered offer and sale of crypto asset securities Tronix (TRX) and BitTorrent (BTT).” The SEC also alleges that Sun “fraudulently manipulat[ed] the secondary market” and “orchestrat[ed] a scheme to pay celebrities to tout TRX and BTT without disclosing their compensation” among other accusations.
The SEC also charged adult film star Kendra Lust and influencer Jake Paul in the case. So far, all of the celebrities tied to Sun and his crypto firms — apart from Mahone and Soulja Boy — have reached settlements with the SEC, paying over $400,000 in “disgorgement, interest and penalties… without admitting or denying the SEC’s findings.”
The SEC’s complaint against Sun and his companies was filed March 22 in the U.S. District Court for the Southern District of New York.
“This case demonstrates again the high risk investors face when crypto asset securities are offered and sold without proper disclosure,” said SEC chair Gary Gensler. “As alleged, Sun and his companies not only targeted U.S. investors in their unregistered offers and sales, generating millions in illegal proceeds at the expense of investors, but they also coordinated wash trading on an unregistered trading platform to create the misleading appearance of active trading in TRX. Sun further induced investors to purchase TRX and BTT by orchestrating a promotional campaign in which he and his celebrity promoters hid the fact that the celebrities were paid for their tweets.”
“While we’re neutral about the technologies at issue, we’re anything but neutral when it comes to investor protection,” said Gurbir S. Grewal, director of the SEC’s division of enforcement. “As alleged in the complaint, Sun and others used an age-old playbook to mislead and harm investors by first offering securities without complying with registration and disclosure requirements and then manipulating the market for those very securities. At the same time, Sun paid celebrities with millions of social media followers to tout the unregistered offerings, while specifically directing that they not disclose their compensation. This is the very conduct that the federal securities laws were designed to protect against regardless of the labels Sun and others used.”
February was a big month for music and NFTs. Spotify plugged into Web3 with a token-gated playlist experiment, while Def Jam Records signed a virtual band. Snoop Dogg returned with a fresh NFT drop and Rihanna fans got the chance to own streaming royalties in “Bitch Better Have My Money,” right in time for her Super Bowl halftime show — although the NFT drop was not without controversy.
Overall, crypto prices crept higher in February, with Ethereum now up 46% from the start of the year. Based on analysis of sales data from 19 different NFT platforms, independent releases combined with secondary sales volume on OpenSea, here are the 10 biggest-selling music NFTs and collections in February 2023.
1/ Rihanna – “Bitch Better Have My Money”Monthly trading volume: $532,452Primary sales (Feb.): $63,000Secondary volume: 284 ETH ($469,452)Drop date: Feb. 9
While Rihanna was making history at the Super Bowl, her music was making headlines in the NFT space. A portion of streaming royalties in her track, “Bitch Better Have My Money”, were sold via NFTs on Web3 platform Anotherblock, netting $63,000 in sales and a further $469,452 in secondary trading volume. The hype was amplified as Rihanna opened her Feb. 12 halftime set with the track, sending global streaming figures 594% higher in the week ending Feb. 16.
The NFT drop was controversial, though. It was not officially endorsed by Rihanna; instead, the royalties were unlocked through producer DEPUTY’s share in the track, and it’s unknown whether Rihanna was aware of it. The NFTs also quadrupled in value on the secondary market, shooting far beyond logical expectations for return based on the streaming calculations.
The collection was later halted on OpenSea for “promising fractional ownership and future profit based on that ownership” — something OpenSea doesn’t allow — proving that NFT projects positioning themselves purely as investments are still at risk of regulatory scrutiny.
View the collection on OpenSea.
2/ Violetta Zironi – “Another Life”Monthly trading volume: 167 ETH ($276,552)Primary sales (Feb): ~110 ETH ($182,160)Secondary volume: 57 ETH ($94,392)Drop date: Feb. 17
After a successful genesis drop last year, singer-songwriter Violetta Zironi returned in February with a new collection, Another Life — an EP encompassing five tracks and 5,500 unique profile picture illustrations. Holders get access to virtual shows, live concerts and the ability to use the songs for their own projects. To celebrate the drop, Zironi hosted a 14-hour Twitter Spaces marathon with her community.
View the collection on OpenSea.
3/ Kids of the ApocalypseMonthly trading volume: 10748 SOL ($243,979)Primary sales (Feb): 6,666 SOL ($151,318)Secondary volume: 4082 SOL ($92,661)Drop date: Feb.. 9
Several years in the making, Kids of the Apocalypse (KOTA) is an ambitious, immersive music NFT project built on the Solana blockchain. It features graphic novel characters, dystopian storylines and a dark-pop soundtrack from veteran Swedish producer Stefan Storm, previously of pop duo Sound of Arrows. KOTA is now the biggest music NFT project on Solana, a blockchain that offers faster speeds and cheaper transaction fees than Ethereum.
View the collection on OpenSea.
4/ MyFi Studio – “Wind Tunnels” + “Circles Are Bad”Monthly trading volume: 94.48 ETH ($156,458)Primary sales (Feb): 70.33 ETH ($116,466)Secondary volume: 24.15 ETH ($39,992)Drop dates: January 2023 (“Wind Tunnels”) and February 2023 (“Circles Are Bad”)
“Wind Tunnels” and “Circles are Bad” are innovative NFT instruments that you can play and interact with in real-time. They are fully coded onto the Ethereum blockchain itself, which is a significant departure from most music NFTs, in which music is typically stored on an external server while the NFT simply contains a link to the music. “Wind Tunnels” and the follow-up drum machine project “Circles are Bad,” however, are fully coded onchain.
View the “Wind Tunnels” and “Circles Are Bad” collections on OpenSea.
5/ Shilly: The Access PassMonthly trading volume: 82 ETH ($135,792)Primary sales (Feb.): N/ASecondary volume: 82 ETH ($135,792)Drop date: Jan. 31
Shilly — a Bored Ape that makes chaotic pop-punk records — dropped a series of access passes in January, letting the community get involved in music releases. The most exclusive pass, the Band Pass, gives fans the opportunity to work on music with Shilly and even feature on tracks. The project was incubated by Universal Music’s NFT imprint Probably a Label.
View the collection on OpenSea.
6/ KINGSHIPMonthly trading volume: 76 ETH ($125,856)Primary sales (Feb): N/ASecondary volume: 76 ETH ($125,856)Drop date: July 11, 2022
The Bored Ape supergroup was part of a new pilot experiment with Spotify in February, through which KINGSHIP Key Card holders can now access an exclusive ‘token-gated’ playlist on the streaming platform. The news triggered a fresh wave of buying activity in the KINGSHIP collection, which captured 76 ETH in volume last month. Spotify has partnered with a total of four projects in the NFT space to test the new feature.
View the collection on OpenSea.
7/ Snoop Dogg – XYZMonthly trading volume: 45.2 ETH ($74,851)Primary sales (Feb): 44 ETH ($72,864)Secondary sales: 1.2 ETH ($1,987)Drop date: Feb. 3
Snoop Dogg returned to Web3 to capitalize on one of the biggest current trends in the space: open editions. Rather than a fixed supply of NFTs, with open editions — which are typically sold at a lower price to make them more accessible to collectors — fans can mint as many editions as they want within a set time frame. Web3 music pioneers RAC and 3LAU both dropped open editions this month, but Snoop Doog blew the doors off. The rapper sold more than 10,000 editions in a 3-day period via Sound.xyz. Snoop Dogg’s “XYZ” sold for 0.0042 ETH (about $7) each, totaling more than $70,000.
View the collection on OpenSea.
8/ Sammy Arriaga – “Metagirl (remix) featuring Nessy the Rilla”Monthly trading volume: 30 ETH ($49,680)Primary sales (Feb): 30 ETH ($49,680)Secondary volume: N/ADrop date: Feb. 25
Following in Snoop’s footsteps, independent country artist Sammy Arriaga also launched an open edition on Sound.xyz in February, aiming to beat Snoop Dogg’s 10,000 sales with a series of NFT incentives. The biggest collector will receive a special reward, while the rest will be entered into a lottery to win a valuable NFT. At the time of writing, Arriaga has generated 5,000 sales. One collector purchased more than 1,000 NFTs, briefly becoming Sound.xyz’s biggest all-time collector in terms of NFTs held.
View the collection on OpenSea.
9/ Tycho – “The Science of Patterns”Monthly trading volume: $19,000Primary sales: $19,000Secondary volume: N/ADrop date: Feb. 25
Electronic producer Tycho reissued his 20-year-old EP, The Science of Patterns, in February as a digital release for the first time. As a twist, the record is only available as an NFT through Tycho’s Web3 fan club portal. Powered by Web3 tech company Medallion, the multitrack album format is brand new to Web3, allowing fans to stream the entire album within the NFT itself, unlike previous album NFTs which simply unlocked access to music elsewhere.
10/ WVRPSoundMonthly trading volume: 11.09 ETH ($18,365)Primary sales (Feb): N/ASecondary volume: 11.09 ETH ($18,365)Drop date: January 17, 2022
WVRPSound is the biggest music NFT project ever in terms of trading volume. Since launching in January 2022, the collection of AI-generated music and animated characters have earned more than 6,000 ETH in volume (approximately $7.3 million). The project recently announced plans to launch playable versions of its characters in The Sandbox metaverse.
View the collection on OpenSea.
Methodology: The chart was compiled using data from primary music NFT sales across 19 different NFT platforms, independent releases and combined with secondary volume data from OpenSea. Data was captured between Feb. 1 – Feb. 28, 2023. Conversion rates from crypto to US dollars were calculated on Feb 28.