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.
Akon is reportedly erecting a massive city in Senegal that is slated to house upwards of 300,000 residents, operate on an "Akoin" cryptocurrency, and according to previous reports, was slated for unveiling in 2036. However, Devyne Stephen, a music executive who has worked with Jay-Z and Usher, is reportedly suing Akon for almost $4 million.
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."
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