- Nader Al-Naji is the founding father of BitClout, a blockchain social media platform that raised $257 million in a token providing.
- The SEC's expenses allege violations of the Securities Act of 1933 and the Securities Trade Act of 1934.
The US Securities and Trade Fee charged Nader Al-Naji (aka “Diamondhands”) with fraud and promoting unregistered securities.
Nader Al-Naji is the founding father of BitClout, a cryptocurrency social media platform that raised $257 million within the ICO of its native token.
Al-Naji arrested
Whereas he reportedly advised traders that the cash was not for private use or to pay BitClout workforce members, Al-Naji went on to spend over $7 million of the cash on private bills, together with lease for a Beverly Hills mansion. He additionally gave money items to relations, the SEC raided in a information launch on Tuesday.
“As acknowledged in our grievance, Al-Naji tried to avoid federal securities legal guidelines and defraud the investing public, mistakenly believing that 'being a 'pretend' decentralized usually confuses regulators and discourages them from going after you ,” Gurbir S. Grewal, director of the SEC's Division of Enforcement, stated in an announcement.
The SEC's expenses towards Al-Naji allege violations of provisions of the Securities Act of 1933 and the Securities Trade Act of 1934.
The U.S. Division of Justice additionally blamed BitClout's founder for the U.S. Legal professional's Workplace for the Southern District of New York saying expenses towards Al-Naji.
'Diamondhands' was arrested on Saturday and arraigned by the Division of Justice on Monday.
