Mike Smith Gets 18 Months for Streaming Fraud — SkimNews
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- Mike Smith was sentenced to 18 months in Manhattan federal court on Oct. 6 by Judge John G. Koeltl, becoming the first person convicted in a federal music streaming fraud case; the sentence includes two years of supervised release.
- The 18-month sentence split the difference between the 46 months prosecutors requested and the probation Smith's defense sought; Smith also agreed to forfeit $8 million in unearned royalties as part of his March guilty plea to one count of conspiracy to commit wire fraud.
- Prosecutors alleged that between 2017 and 2024, Smith used an army of bots to improperly stream his own music millions of times, and also generated royalties by bot-streaming AI-generated songs he purchased and uploaded to platforms.
- RZA of the Wu-Tang Clan submitted a character letter on Smith's behalf, citing their business relationship through Smith's rap competition show "One Shot" and the 2024 horror film "Nyctophobia," which they both executive produced.
- Smith's defense argued that streaming platforms' terms of service did not specifically prohibit bot use when he started the scheme, and contended that structural reforms to the music ecosystem — not individual prison sentences — would better deter streaming fraud.
Why it matters: Smith drew 18 months for an $8 million streaming fraud scheme — well below the 46 months prosecutors sought but above the probation his defense requested — establishing the first federal sentencing benchmark for a novel crime prosecutors say siphoned money from the royalty pool every working artist depends on. The split-the-difference outcome gives defense counsel in future streaming fraud cases a concrete precedent to cite when arguing for leniency.
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