Close Menu
Technology Mag

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    How Peter Thiel’s Relationship With Eliezer Yudkowsky Launched the AI Revolution

    May 21, 2025

    The Best Bug Sprays to Keep Bites at Bay

    May 21, 2025

    Android 16 adds AI-powered weather effects that can make it rain on your photos

    May 21, 2025
    Facebook X (Twitter) Instagram
    Subscribe
    Technology Mag
    Facebook X (Twitter) Instagram YouTube
    • Home
    • News
    • Business
    • Games
    • Gear
    • Reviews
    • Science
    • Security
    • Trending
    • Press Release
    Technology Mag
    Home » ‘A Billion Streams and No Fans’: Inside a $10 Million AI Music Fraud Case
    Business

    ‘A Billion Streams and No Fans’: Inside a $10 Million AI Music Fraud Case

    News RoomBy News RoomMay 21, 20254 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Email

    Almost no one hits it big in music. The odds are so bad it’s criminal. But on a late spring evening in Louisville, Kentucky, Mike Smith and Jonathan Hay were having that rare golden moment when everything clicks. Smith was on guitar. Hay was fiddling with the drum machine and keyboard. Dudes were grooving. Holed up in Hay’s living room, surrounded by chordophones and production gizmos, the two musicians were hoping that their first album as a jazz duo would finally win them the attention they’d been chasing for years.

    It was 2017. The men, then in their forties, were longtime collaborators and business partners—though they made an odd couple. Smith owned a string of medical clinics and wore tight shirts over his meticulously maintained muscles. He lived in a sprawling house in the suburbs of Charlotte, North Carolina, with his wife and six kids. He’d judged on a reality TV show and written a self-help book. Hay—larger, softer, comfy in sweatsuits and Crocs—lived in an apartment and was dating a stripper. He loved weed. He’d hustled as a music publicist for years; by reputation he was best known in the industry for promoting a nuclear rumor that Rihanna had hooked up with Jay-Z. He’d recently, on an impulse, had sleeves tattooed on his arms. To avoid annoying his health-nut friend, he’d sneak into his bedroom to vape.

    Michael Smith and Jonathan Hay were longtime collaborators and something of an odd couple.

    Photograph: Jonathan Hay; Getty Images

    Smith and Hay finished their album and called it Jazz. That fall, they released it on all the usual places—Spotify, Apple Music, Tidal—and as a physical album. Alas, it failed to take off. Smith and Hay weren’t total nobodies; a few songs they had coproduced for other artists years earlier had gotten some buzz. So the two men decided to retool Jazz and release an updated version, adding new songs.

    Jazz (Deluxe) came out in January 2018. Right away, it shot up the Billboard chart and hit No. 1. Hay was elated. At last, real, measurable success had arrived.

    Then, just as suddenly, the album disappeared from the ranking. “Nobody drops off the next week to zero,” says Hay, remembering his confusion. He called other artists to ask if they’d ever seen this before. They hadn’t. Questions piled up. If so many people had listened, why did they suddenly stop? He scanned the internet for chatter. Even a single freaking tweet would have been nice. Nada. Where were the fans? “No one’s talking about the music,” Hay realized.

    Pulling up Spotify’s dashboard for artists, Hay scrutinized the analytics for the pair’s work. Listeners appeared concentrated in far-flung places like Vietnam. Things only got stranger from there. Here’s how Hay remembers it: He started receiving notices from distributors, the companies that handle the licensing of indie artists’ music. The distributors were flagging Smith and Hay’s music, from Jazz and from other projects, for streaming fraud and pulling it down. Smith told Hay it was a mistake and that Hay had messed up securing the proper rights for samples. Hay frantically tried to correct the issue, but the flagging persisted.

    Hay, panicking, badgered Smith to help him figure out what was happening. Finally, Hay says, Smith offered some answers: Smith had instructed his staff at the medical clinics to stream their songs. It didn’t sound like the full story.

    Then, last September, Smith turned up at the heart of another music streaming incident, this one rather epic. The FBI arrested him and charged him in the first AI streaming fraud case in the United States. The government claims that between 2017 and 2024, Smith made over $10 million in royalties by using bot armies to continuously play AI-generated tracks on streaming platforms. Smith pleaded not guilty to all charges. (Through his lawyer, Smith declined to be interviewed, so this is very much Hay’s side of the story, corroborated by numerous interviews with people who worked with the two men.)

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email
    Previous ArticleThe Best Memorial Day Mattress Deals (and Bedding, Too!)
    Next Article Google’s future is Google Googling

    Related Posts

    How Peter Thiel’s Relationship With Eliezer Yudkowsky Launched the AI Revolution

    May 21, 2025

    What to Expect When You’re Convicted

    May 20, 2025

    Trump Signs Controversial Law Targeting Nonconsensual Sexual Content

    May 20, 2025

    China’s Effort to Build a Competitor to Starlink Is Off to a Bumpy Start

    May 20, 2025

    DOGE Loses Battle to Take Over USIP—and Its $500 Million Headquarters

    May 20, 2025

    A Silicon Valley VC Says He Got the IDF Starlink Access Within Days of October 7 Attack

    May 20, 2025
    Our Picks

    The Best Bug Sprays to Keep Bites at Bay

    May 21, 2025

    Android 16 adds AI-powered weather effects that can make it rain on your photos

    May 21, 2025

    19-year-old student to plead guilty to huge school database hack

    May 21, 2025

    Everything Google Announced at I/O 2025

    May 21, 2025
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    Games

    ‘Fortnite’ Players Are Already Making AI Darth Vader Swear

    By News RoomMay 21, 2025

    On Friday, Epic Games announced Darth Vader would be returning to Fortnite as an in-game…

    Google teases an Android desktop mode, made with Samsung’s help

    May 21, 2025

    With AI Mode, Google Search Is About to Get Even Chattier

    May 21, 2025

    AMD takes aim at Intel with new 96-core Threadripper 9000 series CPU

    May 21, 2025
    Facebook X (Twitter) Instagram Pinterest
    • Privacy Policy
    • Terms of use
    • Advertise
    • Contact
    © 2025 Technology Mag. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.