Nader Al-Naji Fraud Case: BitClout Founder Faces SEC Charges
- Nader Al-Naji is the founder of BitClout, a blockchain social media platform that raised $257 million through a token offering.
- The SEC’s charges involve violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
The U.S. Securities and Exchange Commission charged Nader Al-Naji, also known as “Diamondhands,” with fraud and selling unregistered securities.
Nader Al-Naji is the founder of BitClout, a cryptocurrency social media platform that raised $257 million through an ICO of its native token.
Nader Al-Naji’s Allegations and Arrest
Al-Naji allegedly misused investor funds, using more than $7 million for personal expenses, including rent for a Beverly Hills mansion and cash gifts to family members, violating promises made to investors.
According to the Securities and Exchange Commission, Al-Naji attempted to evade federal securities laws by falsely promoting decentralization to confuse regulators. However, his actions have led to legal consequences.
Legal Actions Against Nader Al-Naji
The SEC’s charges against Al-Naji involve violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Additionally, the U.S. Department of Justice filed criminal charges against him.
Following his arrest, Nader Al-Naji, also known as “Diamond Hands,” appeared in court to face the charges brought against him by the Justice Department and the SEC.
