September 5, 2024 at 12:50PM
Musician Michael Smith faces charges for a streaming fraud scheme, accused of using AI-generated songs streamed by thousands of bots to collect over $10 million in royalty payments from Spotify, Amazon, Apple, and YouTube Music. He employed over 1,000 bot accounts and manipulated streaming data to avoid detection. The scheme carries prison sentences of up to 20 years.
Based on the meeting notes, the key points are:
1. Musician Michael Smith was indicted for orchestrating a massive streaming fraud scheme, in which he collected over $10 million in royalty payments from Spotify, Amazon Music, Apple Music, and YouTube Music using AI-generated songs streamed by thousands of bots.
2. Smith fraudulently inflated music streams on digital platforms between 2017 and 2024 with the help of a music promoter and the Chief Executive Officer of an AI music company.
3. He acquired hundreds of thousands of AI-generated songs from a coconspirator and used automated bots to stream them billions of times on various platforms while using virtual private networks (VPNs) to avoid detection by anti-fraud systems.
4. At the peak of the operation, Smith allegedly employed over 1,000 bot accounts to artificially boost streams, and estimated significant daily, monthly, and annual earnings from the fraudulent activities.
5. It’s estimated that Smith’s fraudulent activities resulted in over 4 billion fake streams and $12 million in royalties since 2019, and he now faces charges of wire fraud, wire fraud conspiracy, and money laundering conspiracy, each carrying a maximum sentence of 20 years in prison.
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