As a seasoned analyst with years of experience in the tech and finance industries, I’ve seen my fair share of questionable practices. However, the case of Nader Al-Naji, the founder of BitClout, stands out as one of the most egregious examples I’ve encountered.
Nader Al-Naji, the creator of BitClout, faced legal action from the U.S. Securities and Exchange Commission (SEC) due to accusations of misusing approximately $7 million that had been invested by others. It is claimed he utilized this money for personal expenses such as renting a mansion in Beverly Hills and distributing cash presents among his family members.
The SEC is additionally charging Al-Naji for illegally selling $257 million worth of securities via the BTCLT token, a native token of the BitClout initiative. It’s important to note that the funds he allegedly mismanaged stem from this source.
“Defendant Al-Naji has been accused in a court filing since November 2020, up until now, of amassing over $257 million by marketing and selling crypto asset securities to investors. This was allegedly done through misleading them about the purported ‘decentralized’ aspect of the project he was endorsing. Additionally, it is claimed that he improperly used investor funds for personal luxury expenditures, enriching himself, his relatives, and his businesses, in violation of the law.”
It’s said that Al-Naji may have misled investors about the true nature of the project, suggesting it was decentralized. However, authorities suspect he secretly managed the project while presenting a decentralized image to evade regulatory oversight. The statement also points out that Al-Naji attempted to deceive regulators by depicting BitClout as a “decentralized” platform with no company behind it, only coins and code.
As a researcher delving into this subject, I discovered an intriguing detail: He adopted the alias ‘Diamondhands’ when communicating with investors, assuring them that the bitcoin they invested in the BTCLT token would be safeguarded for neither personal nor project uses. However, it appears that the funds were actually diverted for his own benefit, misleading users into believing their investments were securely stored in a treasury.
Additionally, he bestowed generous monetary gifts worth at least $2.9 million on family members such as his wife Buse Desticioglu Al-Naji and mother Joumana Bahouth Al-Naji. Furthermore, it was discovered that BitClout’s employees received payments from the investor funds, a practice he had previously assured would not occur with those funds.
Al-Naji is popular for founding the Decentralized Social (DeSo) protocol.
Read More
- CKB PREDICTION. CKB cryptocurrency
- EUR INR PREDICTION
- PENDLE PREDICTION. PENDLE cryptocurrency
- TANK PREDICTION. TANK cryptocurrency
- USD DKK PREDICTION
- IMX PREDICTION. IMX cryptocurrency
- ICP PREDICTION. ICP cryptocurrency
- PBX PREDICTION. PBX cryptocurrency
- W PREDICTION. W cryptocurrency
- GEAR PREDICTION. GEAR cryptocurrency
2024-08-02 11:33