< Back to all clusters
[CRIME] · United States · 21 sources

started · updated

Michael Smith sentenced to prison for AI-driven music streaming fraud

Michael Smith, a 54-year-old North Carolina resident, has been sentenced to 18 months in prison for a massive music streaming fraud scheme. This marks the first federal criminal case in the United States involving streaming fraud assisted by artificial intelligence.

Between 2017 and 2024, Smith utilized AI to generate hundreds of thousands of songs, which he then uploaded to platforms including Spotify, Amazon Music, Apple Music, and YouTube Music. To inflate royalty payments, he deployed an army of up to 10,000 automated bot accounts to stream the tracks continuously. To avoid detection by platform security, he distributed the streams across a vast catalog of tracks under fictitious artist names.

The scale of the operation was significant; in April 2023 alone, Smith's fraudulent accounts generated 80.9 million streams on YouTube Music, vastly exceeding the monthly streams of major artists like Taylor Swift. As part of his sentence, Smith must forfeit approximately 8 million dollars in illicitly obtained royalties and will serve two years of supervised release following his prison term.

Entities

Apple Music · Department of Justice · FBI · Jamie McDonald · John G. Koeltl · Manhattan federal court · Michael Smith · Recording Industry Association of America · Spotify · U.S. Department of Justice · YouTube Music

Claims

What the coverage asserts, and how many sources carry each claim.

Sources