INTL · 28 July 2026
AI Streaming Fraud Sentencing Tomorrow: Bot Network Stole $8M From All Artists
Source: Bing News
A US record producer is due to be sentenced for using a network of bots to steal over $8m in music streaming royalties. Michael Smith, 54, faces up to five years in federal prison after pleading guilty to conspiracy to commit wire fraud. Prosecutors say he evaded detection by spreading billions of fake streams across hundreds of thousands of artificial intelligence-generated songs. The scheme diverted royalties from legitimate musicians on platforms including Spotify, Apple Music, Amazon Music, and YouTube Music over seven years. Smith has agreed to forfeit more than $8m in stolen funds at the federal court in Manhattan.
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Background: AI in Courts and Sentencing