US Musician Mike Smith Jailed 18 Months for AI Music Streaming Fraud, Forfeits $8M

American musician Mike Smith has received an 18-month prison sentence for his involvement in a scheme that used automated bots to falsify music stream counts and illegally collect millions in royalties. A federal court in Manhattan handed down the judgment on Tuesday, October 6, after Smith entered a guilty plea to conspiracy to commit wire fraud back in March.

Prosecutors detailed how Smith deployed automated bots between 2017 and 2024 to generate millions of fabricated streams. He also leveraged this technology to artificially boost songs created using artificial intelligence, ultimately amassing approximately $8 million in royalty payments. As part of his plea agreement, Smith is required to forfeit the $8 million he acquired. Additionally, he will undergo two years of supervised release once his prison term concludes.

During the sentencing, Smith, a father of six, expressed deep remorse, becoming emotional as he acknowledged betraying the trust of the music community. He stated to the court, "By committing this cr!me, I have failed miserably."

While prosecutors had advocated for a more substantial 46-month prison term, Smith's legal team sought probation. Ultimately, the judge decided on the 18-month incarceration period.