Nader Al-Naji Arrested in $257M BitClout Cryptocurrency Fraud

Nader Al-Naji Arrested in $257M BitClout Cryptocurrency Fraud

Nader Al-Naji, a former Google employee and Princeton graduate, was arrested this week for his role in a massive cryptocurrency fraud involving the social network BitClout. Operating under the pseudonym “Diamondhands,” Al-Naji is accused of deceiving investors and users into investing millions in BitClout, a platform where people’s social profiles were turned into stock-like investments without their consent.

According to the indictment filed by the Securities and Exchange Commission (SEC) in New York federal court, Al-Naji falsely claimed BitClout was decentralized and that no one had control over the funds. In reality, he allegedly funneled the money into personal purchases, including a lavish six-bedroom mansion in Beverly Hills.

BitClout’s failure marked Al-Naji’s second troubled cryptocurrency project. Previously, he raised $118 million to create the stablecoin “Basis,” which was shut down shortly after launching. The SEC claims Al-Naji misled venture capitalists and retail investors, raising a total of $257 million with BitClout, which ultimately left its “BTCLT” tokens worthless.

Now facing both SEC civil charges and FBI wire fraud charges, Al-Naji could face up to 30 years in prison if convicted.