Foundation

<a href="https://bitcoinworld.co.in/bitclout-crypto-exchange-founder-sued-for-massive-fraud/" title="BitClout Crypto Exchange Founder Sued For Massive Fraud" rel="noopener noreferrer nofollow"></a>
Nader Al-Naji, the founder behind BitClout and Basis, is facing a civil lawsuit from the SEC for allegedly raising over $257 million through an unregistered securities offering.&nbsp;
Additionally, he is charged with wire fraud in New York.
The SEC’s <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.625603/gov.uscourts.nysd.625603.1.0.pdf" rel="noopener noreferrer nofollow">lawsuit</a> targets BTCLT, the token associated with BitClout, claiming it was marketed as an investment security without proper registration.
Al-Naji purportedly described BTCLT as comparable to stock ownership in the platform, suggesting significant potential returns for early investors.
Al-Naji allegedly sought to mislead regulators by creating a false impression of decentralization and even tried to obtain a legal opinion to falsely claim BitClout was not a securities offering.
He reportedly used the claim that no funds were raised for development to attract investment, despite using $15 million of the funds to list BTCLT on Blockchain.com.
The SEC also accuses Al-Naji of misusing the funds by paying himself, his family, and covering personal expenses like luxury rentals and credit card bills.&nbsp;
His wife, mother, and the DeSo Foundation are implicated in the case due to alleged transfers of funds to them.

BitClout Crypto Exchange Founder Sued For Massive Fraud

ItsBitcoinWorld

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