On September 5, 2024, the FBI arrested North Carolina musician Michael Smith for earning over $10 million in royalties through fraudulent bot streams.
Reports indicate that Smith employed automated programs to artificially inflate streaming numbers, generating billions of streams and substantial revenue. From 2017 until his arrest, Smith manipulated up to 661,000 daily streams across multiple AI-generated songs using around 10,000 fake profiles, resulting in up to $1 million in annual royalties.
Smith is accused of collaborating with the CEO of an undisclosed AI music company and a music promoter to execute this scheme. He faces charges of wire fraud and money laundering, which could lead to up to 60 years in prison if convicted.
Smith’s arrest highlights ongoing issues with streaming manipulation in the music industry. In Nigeria, similar practices known as stream farming have prompted digital service providers to combat these fraudulent activities aimed at gaining illegal revenue and competitive advantage.