Prosecutors say he generated millions through bot-driven plays.
Photo credit: Brett Jordan on Unsplash
A North Carolina man has pleaded guilty to orchestrating a multimillion-dollar fraud scheme targeting music streaming platforms through AI-generated content and automated listening bots.
Michael Smith, 52, entered a guilty plea to conspiracy to commit wire fraud in New York’s Southern District on Friday, March 20th, 2026. The case marks one of the first successful criminal prosecutions involving AI-driven fraud in the music sector.
According to prosecutors, Smith created thousands of tracks using artificial intelligence and manipulated their play counts into the billions through automated systems. Between 2017 and 2024, the operation allegedly produced up to 661,000 streams per day, generating more than $10 million in royalties.
Authorities stated that the scheme diverted revenue away from legitimate artists and rights holders by exploiting the pro-rata payout model used by major streaming platforms.
Under the terms of the plea agreement, Smith faces a sentence of up to five years in prison and has agreed to forfeit over $8 million. He is scheduled to be sentenced in July 2026.
More information is available here.
