US EditionSinger-Songwriter Michael Smith Pleads Guilty to Defrauding Music Streamers Out of Millions Using AI in First-Ever Case of Its Kind
Michael Smith used AI and bots to generate and stream fake songs, siphoning $8 million in royalties and agreed to repay $6.5 million while facing up to five years in prison.
- On Friday , North Carolina man Michael Smith pleaded guilty and agreed to repay over £6.5 million to U.S. federal prosecutors, Southern District of New York.
- On streaming platforms like Spotify and Apple Music, Smith used AI to generate thousands of songs and automated programs to inflate streams.
- Prosecutors say the fraud involved 660,000 fake streams per day, producing $1,000,000 in annual fraudulent royalties from billions of artificial plays.
- Funds will be returned to the U.S. government and redistributed to legitimate artists, songwriters and rights holders, while prosecutors say the case may set an enforcement precedent as streaming platforms step up policing.
- With a wider debate over AI and copyright, prosecutors described it as the 'first-ever' criminal case involving AI-assisted music streaming fraud, as industry surveys show 97 percent of listeners struggle to distinguish AI music.
13 Articles
13 Articles
North Carolina Man admits guilt in AI-driven music streaming fraud scheme
CORNELIUS, NC (WWAY) — Jay Clayton, United States Attorney for the Southern District of New York, announced that Michael Smith has pleaded guilty for his role in a scheme that defrauded music streaming platforms and artists out of royalty payments. Smith admitted to creating hundreds of thousands of songs using artificial intelligence and using automated programs, or “bots,” to stream those tracks billions of times in order to imitate legitimate…
First Music Streaming Fraud Case: North Carolina Man Faces Jail and £6.5 Million Fine for Using AI and Bots
A North Carolina man has agreed to repay over £6.5 million ($8 million) after pleading guilty in what officials are calling the first-ever criminal case involving AI-assisted music streaming fraud. Mike Smith, indicted in 2024, used artificial intelligence to generate thousands of songs and then created bots to stream them millions of times, siphoning royalties away from legitimate artists across major platforms. In addition, he faces a maximum …
Michael Smith will pass into history as the first case of musical fraud aided by the AI, as he made profits for $8 million that he generated thanks to fake reproductions.According to the reports, the 54-year-old musician created a very efficient system of bots and song production with AI to become a millionaire.However, the case was detected by the authorities and now Michael Smith, who was arrested since 2024, pleaded guilty, so he will face a …
Billion-stream ‘ghost artist’ exposed: North Carolina man pleads guilty in first-ever AI music fraud case, forfeits $8.1M
US News: It is a feat most Grammy winners never achieve: billions of streams across the world’s largest platforms. But for Michael Smith, a 54-year-old North C.
Man Pleads Guilty To Stealing $8 Million In Royalties From Streaming Platforms Using AI-Generated Listeners And Artists
A man pled guilty to stealing $8 million in royalties from streaming platforms, creating bot accounts to stream tracks he generated using AI. The post Man Pleads Guilty To Stealing $8 Million In Royalties From Streaming Platforms Using AI-Generated Listeners And Artists appeared first on Metal Injection.
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