CahinCatcher news, BitClout founder Nader Al-Naji was arrested last Saturday in Los Angeles on charges of telecommunications fraud in New York. On Tuesday, federal regulators filed a civil lawsuit against him. He appeared in federal court in Los Angeles on Monday and was released on bail.Previous news, BitClout founder Nader Al-Naji is accused by the U.S. Securities and Exchange Commission of implementing a fraudulent cryptocurrency scheme worth millions of dollars, involving a social media platform called BitClout and its namesake native token.

ChainCatcher news reports that, according to official sources, the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against BitClout founder Nader Al-Naji, accusing him of running a fraudulent cryptocurrency scheme worth millions of dollars, involving the social media platform BitClout and its native token BTCLT. Since November 2020, Al-Naji has raised over $257 million from the unregistered BTCLT issuance and falsely informed investors that the funds would not be used for personal compensation.The SEC alleges that Al-Naji described BitClout as a decentralized project, using the alias "Diamondhands" to evade regulatory scrutiny. In reality, Al-Naji used over $7 million of investor funds for personal expenses, including renting a mansion in Beverly Hills and giving luxurious cash gifts to family members. Meanwhile, the U.S. Attorney's Office for the Southern District of New York has also brought charges against Al-Naji.