Nader Al-Naji, Wire Fraud, California 2021

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Nader Al-Naji Charged with Wire Fraud in BitClout Token Scam

Nader Al-Naji, 32, of Los Angeles, California, has been charged with one count of wire fraud in connection with the sale of BitClout tokens, a digital asset that allowed users to purchase tokens using Bitcoin.

According to the allegations, Al-Naji lied to a prospective investor, referred to as Investor-1, about his control over the funds raised from selling BitClout tokens. Al-Naji claimed that he did not have any control over the funds after the purchase was complete, when in fact, he maintained control over the proceeds and used them for personal expenses and gifts to his family members.

The scam occurred in January 2021, when Al-Naji contacted representatives of Investor-1 to discuss the BitClout project. He provided Investor-1 with BitClout’s marketing material and met with them to discuss the project. Al-Naji claimed that the role played by his entity was merely to purchase BitClout tokens from the protocol, when in fact, he maintained control over the funds and used them for personal gain.

After inducing Investor-1 to invest approximately $3 million, Al-Naji routed the funds through multiple accounts for the ultimate benefit of himself and family members.

Al-Naji was taken into custody on Saturday, July 27, 2024, and was presented yesterday before a U.S. Magistrate Judge in California. He is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.

U.S. Attorney Damian Williams praised the investigative work of the FBI and thanked the Securities and Exchange Commission for its assistance in the investigation. The case is being overseen by Mr. Williams and Assistant U.S. Attorney Jessica Fender of the Securities and Commodities Fraud Unit.

The FBI does not tolerate individuals who use false promises and half-truths to exploit well-intentioned investors of their funds. The investigation is ongoing, and further charges may be forthcoming.