When news of Akon‘s plan on building his own city in Africa first was introduced, people called him crazy. As it progressed, the singer and businessman was applauded for tackling such an enormous effort, but today (March 9), Akon is facing serious allegations from his former business partner who has accused him of running a Ponzi scheme.
Will you be visiting Akon City? 🙌🏿✨ pic.twitter.com/pB4sByUelx
— Akoin.io (@AkoinOfficial) May 18, 2021
The suit was filed last year and Stephens has asked a judge to freeze some of Akon’s assets because, according to Page Six, he would have difficulty collecting his cash without it after reportedly reaching a legal settlement. In documents filed with the courts this week, Stephens accused Akon of operating a shady business.
According to retired federal Special Agent Scot Thomasson, who was hired by Stephens’s attorney, Akon City and Akoin boast “many of the trademark characteristics (known as ‘red flags’) of fraudulent business ventures such as Ponzi schemes and pyramid schemes.” The attorney added that the city is nothing more than “broken promises.”
“Akon has provided almost no transparency about who is investing in Akon City or how it will be purportedly built. Therefore, Akon City is likely a scam,” Movit wrote, citing Thomasson’s affidavit.
The report also stated that there doesn’t seem to be a clear plan on how the cryptocurrency would be used, however, Page Six added that “it’s being promoted with raffles and tokens.” The court documents said this is “characteristic of a multi-level marketing scheme.”
https://t.co/NfL4GynmdZ is a cryptocurrency, powered by a marketplace of tools and services to fuel the dreams of entrepreneurs, business owners, and social activists. #Akoin helps them connect and engage across the rising economies of Africa and beyond; created by @Akon. pic.twitter.com/efzPrMXVhM
— Akoin.io (@AkoinOfficial) March 4, 2021
"The music part was the excitement, building Akon City was the experience, and now Akoin is like the legacy."@Akon discusses #Akoin during the fireside chat at Proof of Fusion in Abu Dhabi where we recently attended.https://t.co/6zqVPrSmBC
— Akoin.io (@AkoinOfficial) January 13, 2022