An alleged scammer has been arrested under suspicion that he used AI to create a wild number of fake bands — and fake streams to with them.
The songs that the AI CEO provided to Smith originally had file names full of randomized numbers and letters such as "n_7a2b2d74-1621-4385-895d-b1e4af78d860.mp3," the DOJ noted in its detailed press release.
When uploading them to streaming platforms, including Amazon Music, Apple Music, Spotify, and YouTube Music, the man would then change the songs' names to words like "Zygotes," "Zygotic," and "Zyme Bedewing," whatever that is.
The artist naming convention also followed a somewhat similar pattern, with names ranging from the normal-sounding "Calvin Mann" to head-scratchers like "Calorie Event," "Calms Scorching," and "Calypso Xored."
To manufacture streams for these fake songs, Smith allegedly used bots that stream the songs billions of times without any real person listening. As with similar schemes, the bots' meaningless streams were ultimately converted to royalty paychecks for the people behind them.
I've never heard of someone being arrested for breaching ToS though. They could be sued for breach of contract, but that's it. So far the only thing I could think of is if the bots were illegally acquired by hacking devices or something. There's nothing illegal about paying for a server and having it download free Spotify streams.
There's nothing illegal about downloading streams, but if the purpose of your downloads is to get fraudulent royalties, then of course it's illegal as wire fraud under 18 U.S.C. § 1343.