On July 30th, the Securities and Exchange Commission (SEC) announced that Nader Al-Naji has been charged with defrauding investors after raising over $250 million from the unregistered sales of BitClout's native token, BTCLT.

According to the SEC complaint, Al-Naji misled these investors by claiming he did not control the token proceeds and would not use the funds as compensation for himself nor other BitClout employees.

Despite those explicit claims, the SEC alleges Al-Naji used investor funds to personally enrich himself, his relatives, his companies, and others close to him.