North Carolina Musician Charged in Streaming Fraud

Michael Smith, a 52-year-old musician from North Carolina, has pleaded not guilty to charges of wire fraud and money laundering related to an alleged scheme generating over $10 million through artificial intelligence-generated songs streamed via automated bots. The U.S. government indicted him for creating hundreds of thousands of AI songs and manipulating streaming platforms to report billions of streams, employing various fraudulent methods including fake accounts and paid family plans. Spotify has stated it accounted for less than 1% of the total royalties generated in this scheme, attributing its success in limiting fraud to effective preventive measures. Experts warn that Smith's case represents only a small fraction of a larger problem within the industry, with similar schemes costing the music sector an estimated billion dollars annually. The indictment highlights a significant concern over the integrity of the music industry and the exploitation of streaming service policies. As the case unfolds, it marks a notable instance of legal action against streaming fraud involving AI technology.