Key Takeaways:
- Fraud Charges: BitClout founder Nader Al-Naji charged by SEC and U.S. Attorney’s Office for fraud.
- Misuse of Funds: Al-Naji accused of selling $257M in unregistered securities and misusing $7M for personal luxury items.
- Involvement of DeSo: Charges also include Al-Naji’s other project, Decentralized Social (DeSo), with accusations of misleading investors.
On July 30, the U.S. Securities and Exchange Commission (SEC) and the U.S. Attorney’s Office for the Southern District of New York charged BitClout founder Nader Al-Naji with fraud.
The SEC alleged that Al-Naji sold $257 million in unregistered securities through BitClout’s token, BTCLT, and misused $7 million of these funds on luxury goods and gifts to family members.
Today we charged Nader Al-Naji with perpetrating a multi-million-dollar fraudulent crypto asset scheme involving a social media platform called BitClout and its native token of the same name.
— U.S. Securities and Exchange Commission (@SECGov) July 30, 2024
The charges also implicated Decentralized Social (DeSo), another of Al-Naji’s projects.
The SEC accused Al-Naji of misleading investors about BitClout’s operations and falsely claiming decentralization to evade regulation.
1/21
— Adam Cochran (adamscochran.eth) (@adamscochran) July 30, 2024
Today's SEC case against DESO/Bitclout is a great example of some of the dirty games the current SEC plays and why they need to be replaced by any administration moving forward. pic.twitter.com/eqEVg0Cwv0
Relief defendants include Al-Naji’s wife, mother, and related businesses.
Meanwhile, the founders of HighKey Agency, who invest in DeSo, stated the DeSo treasury remains untouched and denied knowledge of Al-Naji’s personal expenditures.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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