- 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.
Najib arrested
Al-Naji allegedly told investors that the money would not be used for personal use or paid to BitClout team members, but he still used more than $7 million of it for personal expenses, including paying for a Beverly Hills mansion of rent. He also gave cash gifts to family members, the Securities and Exchange Commission said in a news release Tuesday.
“As alleged in our complaint, Al-Naji sought to evade federal securities laws and deceive the investing public, falsely believing that ‘fake’ decentralization would generally confuse regulators and prevent them from going after you,” Gurbir S. Grewal, the head of the SEC’s Enforcement Division said in a statement.
The SEC’s charges against Al-Naji involve violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
The U.S. Department of Justice also filed charges against the founder of BitClout, and the U.S. Attorney’s Office for the Southern District of New York announced charges against Al-Naji.
“Diamond Hand” was arrested on Saturday and the Justice Department brought him to court on Monday.
Founder of BitClout Faces SEC Charges
Nader Al-Naji, also known as “Diamondhands,” is currently facing charges from the U.S. Securities and Exchange Commission for fraud and selling unregistered securities. Al-Naji is the founder of BitClout, a blockchain social media platform that garnered $257 million through a token offering.
Alleged Misuse of Funds
According to the SEC, Al-Naji misled investors by claiming that the raised funds would not be used for personal expenses. However, it was revealed that he utilized over $7 million for personal use, including rent for a Beverly Hills mansion and cash gifts to family members. This misuse of funds led to the charges against him.
Legal Consequences
Al-Naji’s actions have resulted in charges under the Securities Act of 1933 and the Securities Exchange Act of 1934. The U.S. Department of Justice has also filed charges against him, leading to his arrest. The Justice Department swiftly brought him to court to face the allegations put forth.
It is crucial for individuals in the cryptocurrency space to adhere to regulatory guidelines and ensure transparency in their financial dealings to avoid legal repercussions.
