In a landmark case, Mike Smith of North Carolina has agreed to pay over $8 million after pleading guilty to the first-ever criminal music streaming fraud case, admitting he used AI-generated music and bot networks to create and stream thousands of songs, diverting millions in royalties from legitimate artists. Charged with conspiracy to commit wire fraud, Smith faces up to five years in prison and will repay nearly $8.1 million in illicit earnings. The case highlights the growing threat of AI-driven streaming fraud, with platforms like Deezer reporting up to 60,000 AI tracks uploaded daily and 85% of streams on those tracks flagged as fraudulent, prompting services like Apple Music to increase penalties as the industry works to combat abuse.
