Nader Al-Naji is the founding father of BitClout, a blockchain social media platform that raised $257 million in a token providing.
SEC’s costs relate to violations of the Securities Act of 1933 and the Securities Alternate Act of 1934.
The US Securities and Alternate 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 buyers that the cash wouldn’t go into private use or to pay BitClout crew members, Al-Naji went on to spend over $7 million of the cash on private expenditures, together with on lease 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 criticism, 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, stated in a press release.
SEC’s costs towards Al-Naji relate to violation of the provisions of the Securities Act of 1933 and f the Securities Alternate 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 asserting costs towards Al-Naji.
‘Diamondhands’ was arrested on Saturday, with the DOJ presenting him earlier than court docket on Monday.
