Summary:
- SEC Charges: Nader Al-Naji, founder of Bitclout (now Decentralized Social), charged by the SEC for a multi-million dollar fraudulent crypto scheme.
- Allegations: The SEC alleges Al-Naji raised over $257 million through unregistered sales of Bitclout tokens and misled investors about the use of funds.
- Misuse of Funds: Al-Naji is accused of using proceeds for personal expenses, including renting a Beverly Hills mansion and giving lavish gifts.
The U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it has charged Nader Al-Naji, the founder of Bitclout (now known as Decentralized Social or Deso), with orchestrating a multi-million dollar fraudulent crypto asset scheme. According to the SEC, Al-Naji, who operated under the pseudonym “Diamondhands,” allegedly sought to evade regulatory scrutiny.
The SEC’s complaint claims that Al-Naji raised over $257 million through the unregistered sale of Bitclout tokens (BTCLT) beginning in November 2020. The regulator accuses Al-Naji of misleading investors about the intended use of the proceeds. Instead of using the funds for business purposes, Al-Naji reportedly spent them on personal luxuries, including renting a mansion in Beverly Hills and distributing lavish cash gifts to family members.
The SEC’s action highlights the continued regulatory scrutiny in the cryptocurrency space, particularly concerning unregistered securities and fraudulent schemes. The agency’s enforcement demonstrates its commitment to protecting investors and maintaining fair markets.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
