[KongchangAI]
Person

Mike Smith

A former healthcare practitioner who once operated a chain of urgent care clinics. He was convicted in federal court for carrying out streaming fraud by using AI to generate music and bots to inflate streaming counts.

Timeline (last 90 days)

Oct 14

Mike Smith was sentenced by a federal court to 18 months in prison for using AI to generate music and botnets to inflate streams, and was ordered to repay $8,091,843.64 in illicit proceeds.

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Oct 14

The core tool Smith used was Boomy, an AI music generation service that allows users to quickly generate songs via simple prompts.

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Oct 14

Smith used Boomy to mass-generate hundreds of thousands of AI songs, created a large number of fictitious artist identities, uploaded them to mainstream streaming platforms through distribution services such as DistroKid, built a bot network to loop-play them in order to inflate streams, and channeled the royalty revenue back to himself.

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Oct 14

What actually made Smith criminally liable was stream manipulation: using bots to inflate play counts violated the platform's terms of service, and his repeated denials when questioned were characterized by prosecutors as fraud.

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Oct 14

A sudden surge in a single artist's play count would immediately trigger a platform's risk-control system, so Smith spread the bot traffic across hundreds of thousands of AI-generated fictitious artists to dilute the risk.

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Oct 14

Spotify went after Smith not because he uploaded AI music, but because bot-driven streaming directly eroded the royalty pool that should have been allocated to real artists.

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