The North Carolina producer has pleaded guilty in Manhattan federal court: he pocketed approximately $10 million by artificially inflating streams. He now faces up to 20 years in prison for wire fraud and money laundering.
As reported today by Murray Stassen on Music Business Worldwide, this admission closes the loop on a case I have previously analyzed (link here).
We are looking at an industrial-scale operation that lasted seven years. Smith exploited hundreds of thousands of AI-generated tracks and 10,000 bots, powered by family plan subscriptions, to fly under the radar. These $10 million were siphoned directly from the royalty pool intended for those who actually create music.
If a single user can simulate over 660,000 streams per day while remaining invisible for years, the platforms have a structural security problem.
Technology should amplify talent, not reward those who are best at gaming the algorithm.
#MusicBusiness #StreamingFraud #MusicIndustry #ArtificialIntelligence #CyberSecurity
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I’m Andrea Corelli, Music Industry Professional and Advisor.
From Monday to Friday, I share strategies, backstage insights, or the stories behind a song on LinkedIn. On weekends, I just enjoy the flow.
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