After a career of three decades, Mr Seck is one of Senegal's biggest stars.
His lawyers say he was the victim of a swindle and the money was paid to him by a producer as an advance for an upcoming tour.
A counterfeiting machine was allegedly found at the home of another man arrested with Mr Seck.
Both men were charged with circulating forged foreign currency, money laundering and conspiracy.
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The BBC's Laeila Adjovi in Dakar says after appearing in court on Tuesday, Mr Seck spent the night in Dakar central prison.
The singer was arrested and taken into custody on 27 May following an investigation into large transactions in foreign currencies, according to local media.
In court, he complained that he had been cheated of 85 million CFA francs ($144,000; Â£90,000) by one of the suspects of the investigation, according to the AFP news agency.
According to the local press, if he is convicted on all charges, 60-year-old Thione Seck could face a life sentence.
Mr Seck started out in Senegalese bands including Star Band and Orchestra Baobab, before becoming the lead singer of the band Raam Daan.
The BBC's Abdourahmane Dia in Dakar says Mr Seck's best known songs are Jongoma and Momy.
The star owns one of Dakar's best known night clubs, Penc Mi, where he and his son Wally Seck regularly perform, our correspondent says.

Addresses were searched in Livingston, Bathgate, Blackburn and Salford, with a reception centre set up to support potential victims.
Police Scotland said 25 people were interviewed as part of the operation.
The men are due to appear at Livingston Sheriff Court on Monday. Two of them are aged 28 and the others 35 and 26.
Police Scotland was supported in the operation - which took place on Friday - by the National Crime Agency, Greater Manchester Police and West Lothian Council.
The men were detained at addresses in Livingston, Bathgate and Salford in Greater Manchester and have been charged in connection with human trafficking offences, involvement in serious and organised crime, and a sexual offence.
Six further addresses were searched in Livingston, Bathgate and Blackburn.
Det Ch Insp Stephen Healy said: "In total, twenty-five people have been interviewed as part of this operation and enquiries are ongoing to establish the circumstances surrounding their travel to and from Scotland.
"In the meantime, they are being offered support and assistance in terms of health and welfare, housing and victim support.
"This operation is the result of a complex and lengthy investigation into serious and organised crime involving foreign nationals centred on West Lothian."
Ch Insp Barry Blair, West Lothian local area commander for Police Scotland said: "The activity under Operation Heathyard has been centred on the Latvian communities in West Lothian and we will continue to support all those affected going forward.
"We will have additional officers on patrol in these neighbourhoods over the weekend to provide reassurance and to speak to anyone who may have any further information or who needs any more advice and assistance.
"I would urge anyone with information or concerns about human trafficking or exploitation in their community to speak to police on 101. We will do all we can with our partners to keep people safe."
West Lothian executive councillor for services for the community, George Paul, added: "Along with other public sector partners, West Lothian Council will provide social care support to the victims."
Senegalese singer Thione Seck has been charged with money laundering after fake banknotes worth millions of euros and dollars were found in his house.
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Four men have been arrested and charged after an operation aimed at tackling human trafficking and serious organised crime in West Lothian.