Man arrested for creating fake AI music and making $10M by listening with bots

Michael Smith, a 52-year-old man from North Carolina, has been arrested for allegedly orchestrating a scheme that involved creating fake bands and music using artificial intelligence, resulting in over $10 million in fraudulent royalties. The Department of Justice announced that Smith, along with two unnamed accomplices—a music promoter and the CEO of an AI music company—was indicted on three counts of money laundering and wire fraud. The indictment details a seven-year operation where Smith generated "hundreds of thousands of songs" and manipulated streaming platforms like Amazon Music, Apple Music, Spotify, and YouTube Music to inflate their play counts using bots. These bots streamed the songs billions of times, converting the artificial streams into real revenue. Smith's alleged co-conspirators provided him with thousands of AI-generated songs, which he renamed to obscure titles before uploading. Despite the overwhelming evidence against him, Smith has denied any wrongdoing, claiming that there is "absolutely no fraud going on whatsoever." The case highlights ongoing concerns about the impact of AI on the music industry and the potential for exploitation within streaming services.

- Michael Smith created fake bands and music using AI, earning over $10 million fraudulently.

- He faces charges of money laundering and wire fraud, with a maximum penalty of 20 years per charge.

- Smith used bots to artificially inflate streaming numbers on major platforms.

- The scheme involved collaboration with a music promoter and an AI music company CEO.

- Smith has denied the allegations, claiming there was no fraud involved.