- Nader Al-Naji is the founding father of BitClout, a blockchain social media platform that raised $257 million in a token providing.
- SEC’s prices relate to violations of the Securities Act of 1933 and the Securities Change Act of 1934.
The US Securities and Change Fee has charged Nader Al-Naji (aka “Diamondhands”) for fraud and the sale of unregistered securities.
Nader Al-Naji is the founding father of BitClout, a cryptocurrency social media platform that raised $257 million in its native token’s ICO.
Al-Naji arrested
Whereas he allegedly advised traders that the cash wouldn’t go into private use or to pay BitClout workforce members, Al-Naji went on to spend over $7 million of the cash on private expenditures, together with on hire for a Beverly Hills mansion. He additionally gave money items to relations, the SEC raid in a press launch on Tuesday.
“As alleged in our grievance, Al-Naji tried to evade the federal securities legal guidelines and defraud the investing public, mistakenly believing that ‘being “faux” decentralized usually confuses regulators and deters them from going after you,’” Gurbir S. Grewal, the director of the SEC’s division of enforcement, mentioned in a press release.
SEC’s prices towards Al-Naji relate to violation of the provisions of the Securities Act of 1933 and f the Securities Change Act of 1934.
The US Division has additionally charged the BitClout founder, with the US Legal professional’s Workplace for the Southern District of New York saying prices towards Al-Naji.
‘Diamondhands’ was arrested on Saturday, with the DOJ presenting him earlier than courtroom on Monday.
