US SEC Sues Founder of Decentralized Social Media Platform BitClout

IconCryptoNewsTerminal Staff30 Jul, 2024

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US SEC Sues Founder of Decentralized Social Media Platform BitClout

BitClout founder Nader Al-Naji has been charged by the Securities and Exchange Commission (SEC) alleging selling $257 million of BTCLT tokens since November 2020. The SEC said Al-Naji misled investors to buy the tokens by making false and misleading statements about the platform and its native token. The SEC also alleges that Al-Naji used the money to pay for his rent and luxury goods. BitClout is a social media platform that allows users to buy and sell social tokens of other users. The platform launched in March 2021 with the promise of giving creators a new way to monetize their content. The SEC's complaint alleges that Al-Naji misled investors by misrepresenting the platform's user base, the demand for BTCLT tokens, and the experience of his team. He also allegedly failed to disclose that he was selling his own tokens and that he used the proceeds to fund his lifestyle. The SEC's action is the latest in a series of crackdowns on cryptocurrency companies. The agency has been investigating the industry for several years, and it has brought a number of enforcement actions against companies that it alleges have violated federal securities laws.

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