SEC Charges BitClout Founder Nader Al-Naji with Fraud Over $257M Crypto Raise
July 30, 2024
The SEC and DOJ charged BitClout founder Nader Al-Naji (TJHSST alum) with fraud and unregistered offering of crypto asset securities. Al-Naji had raised over $257 million in cryptocurrency for BitClout, a decentralized social media platform launched in 2021 where users could invest in tokens representing social influence. Investors included Andreessen Horowitz, Sequoia Capital, Social Capital, Coinbase Ventures, and Winklevoss Capital.
Al-Naji operated under the pseudonym "Diamondhands," portraying BitClout as having "no company behind it, just coins and code," while secretly maintaining control over the project. Al-Naji previously founded Basis, a stablecoin that raised $133 million before returning funds in 2018.
In a notable development, the SEC filed a joint stipulation to dismiss its civil fraud lawsuit against Al-Naji with prejudice in March 2026, meaning the agency cannot refile the same claims.