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Labrish
Nyuuz
NC man pleads guilty to AI streaming fraud scheme
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[QUOTE="Queen, post: 88486, member: 27"] AI streaming scam mastermind cops a plea that could lock him up for years while costing him millions. Michael Smith's guilty plea [LIST] [*]Michael Smith admits conspiracy to commit wire fraud. [*]Cornelius, North Carolina, man faces up to five years in prison. [*]He agrees to forfeit over eight million dollars. [*]Sentencing set for July twenty-nine in New York. [/LIST] Fraud scheme breakdown [LIST] [*]Smith pumped out thousands of AI-generated fake tracks. [*]Bots streamed his songs billions of times across platforms. [*]Amazon Music, Spotify, Apple Music, and YouTube Music are targeted. [*]Operation peaked at over six hundred thousand daily streams. [/LIST] Royalties theft impact [LIST] [*]Fraudulent payouts exceeded eight million dollars total. [*]Real artists lost millions in diverted streaming royalties. [*]Bots spread plays to dodge platform fraud detectors. [*]AI helped churn out hundreds of thousands of songs fast. [/LIST] Investigation fallout [LIST] [*]Mechanical Licensing Collective spotted suspicious volume early. [*]MLC challenged Smith and blocked improper payouts. [*]DOJ credits MLC for key role in fraud detection. [*]Unnamed co-conspirators aided AI track production. [/LIST] [/QUOTE]
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Labrish
Nyuuz
NC man pleads guilty to AI streaming fraud scheme
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