September 21, 2022

Seeking Victims in the FLiK and CoinsSpark Investigation

The FBI’s Atlanta Division is seeking potential victims of the FLiK and CoinSpark cryptocurrency investor defrauding schemes.

In 2017, Ryan Felton promoted an initial coin offering (ICO) for a new entertainment streaming platform, FLiK, which he promised would surpass Netflix. In order to increase, or pump, the price of FLiK coins, Felton falsely represented to investors that a prominent Atlanta rapper and actor was a co-owner of FLiK, the United States military had agreed to distribute the streaming platform to service members, and FLiK was finalizing licensing deals with major film and television studios. Felton further claimed that he was actively developing the platform and would use all funds raised in the ICO to launch FLiK. After the ICO closed, Felton dumped more than 40 million FLiK coins on trading markets, causing the value of FLiK coins to plummet.

In 2018, Felton promoted a second ICO for a new company, CoinSpark, which was a cryptocurrency trading exchange. In order to attract investors to the ICO, Felton promised that Spark coin investors would receive 25% of the trading exchange’s profits in the form of dividends. Felton further claimed that a global accounting firm would audit CoinSpark’s finances on a quarterly basis, but, in reality, he never spoke with the accounting firm. Felton also posed as a potential investor, using fake names, on various internet forums and social media sites to further promote false information and build up excitement in CoinSpark. After raising more than $200,000 in the ICO, Felton announced that CoinSpark would not pay Spark investors a dividend and offered ICO investors a refund. Felton then repeatedly rejected or ignored investor requests for refunds. The CoinSpark exchange ultimately launched months after its promised delivery date but had significant technical issues and minimal trading activity.

Instead of applying ICO proceeds to FLiK and CoinSpark, Felton diverted significant funds to his personal bank account.

Your responses are voluntary but would be useful in the federal investigation and to identify you as a potential victim. Based on the responses provided, you may be contacted by the FBI and asked to provide additional information. The deadline for victim submission is November 1, 2022.

The FBI is legally mandated to identify victims of federal crimes that it investigates and provide these victims with information, assistance services, and resources.

If you invested with FLiK or CoinSpark, please complete this brief questionnaire.