The Federal Bureau of Investigation (FBI) has arrested American singer Michael Smith for allegedly generating $10 million in royalties through fraudulent bot streams.
Smith is accused of using Artificial Intelligence (AI) tools and bots to artificially inflate the number of streams on his songs, resulting in billions of fake plays.
The singer faces serious charges, including three counts of wire fraud, one count of wire fraud conspiracy, and one count of money laundering conspiracy.
In a news release, the U.S. Department of Justice emphasized the gravity of the case, stating that each offence carries a maximum sentence of 20 years in prison.
“As alleged, Michael Smith fraudulently streamed songs created with artificial intelligence billions of times to steal royalties,” the Justice Department said.
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U.S. Attorney Damian Williams commented on the case: “Through his brazen fraud scheme, Smith stole millions in royalties that should have been paid to other rights holders whose songs were legitimately streamed. Thanks to the FBI and the career prosecutors of this Office, it’s time for Smith to face the music.”
Smith’s arrest has sent shockwaves through the music industry, highlighting the growing concerns over the use of AI and bot-driven fraud in the streaming era.
