Last mentioned: Mar 21, 2026
Guilty Plea
Smith officially pleads guilty in a Manhattan federal court to the fraud charges.
Guilty Plea
Smith officially pleads guilty to wire fraud conspiracy in a Manhattan federal court.
Guilty Plea
Smith formally pleads guilty to the charges in a New York federal court.
Federal Indictment
US prosecutors unseal charges against Smith for wire fraud and money laundering.
Federal Indictment
The Department of Justice unseals charges against Smith for wire fraud and money laundering.
Federal Indictment
The DOJ charges Smith with wire fraud and money laundering conspiracy.
AI Integration
Smith transitions to using AI-generated tracks to exponentially increase the volume of content.
AI Integration
Smith shifts to using AI-generated music to create a massive volume of tracks, bypassing fraud filters.
AI Integration
Smith starts using AI-generated music to create a massive volume of unique tracks to bypass fingerprinting.
Scheme Inception
Michael Smith begins using automated bots to stream music on various platforms.
Scheme Inception
Michael Smith begins using automated bots to stream his own music to generate royalties.
Scheme Inception
Smith begins experimenting with bot-driven streaming fraud on major platforms.
A North Carolina man has pleaded guilty to orchestrating a massive fraud scheme that used AI-generated music and bot accounts to siphon over $10 million in royalties from major streaming platforms. This landmark case marks the first major federal prosecution involving AI-generated content used for large-scale financial fraud in the music industry.
Michael Smith of North Carolina has pleaded guilty to wire fraud conspiracy for orchestrating a massive $10 million royalty theft scheme using AI-generated music and automated botnets. The operation, which spanned seven years, highlights a growing cybersecurity threat where synthetic content and automated traffic are used to exploit digital payout systems.
Michael Smith has pleaded guilty to orchestrating a massive fraud scheme that used AI-generated music and automated bots to siphon over $10 million in royalties from major streaming platforms. This landmark case represents the first criminal prosecution involving the use of artificial intelligence to manipulate digital media distribution for financial gain.