Venture Capital
@venture
� Man pleads guilty after making $10M from AI music fraud
Michael Smith, 52, admitted to using AI-generated music and bots to manipulate streaming payouts.
He earned about $10M between 2017 and 2024 and agreed to repay over $8M.
He faces up to 5 years in prison.
He generated hundreds of tracks with obscure names, uploaded them under fake artists, and used bots to create billions of plays. The streams were distributed evenly to avoid detection.
The scheme relied on automated listening to trigger royalty payments. Streaming platforms later flagged the activity and stopped payouts.
The case highlights how AI content combined with bot traffic can exploit payout systems at scale.
@venture
Michael Smith, 52, admitted to using AI-generated music and bots to manipulate streaming payouts.
He earned about $10M between 2017 and 2024 and agreed to repay over $8M.
He faces up to 5 years in prison.
He generated hundreds of tracks with obscure names, uploaded them under fake artists, and used bots to create billions of plays. The streams were distributed evenly to avoid detection.
The scheme relied on automated listening to trigger royalty payments. Streaming platforms later flagged the activity and stopped payouts.
The case highlights how AI content combined with bot traffic can exploit payout systems at scale.
@venture
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