tl;dr
The U.S. authorities have dropped charges against Nader Al-Naji, the founder of decentralized social network BitClout, as per court documents. Last year, he was accused of wire fraud, allegedly defrauding investors of $3 million. However, a recent order approved the withdrawal of the complaint witho...
U.S. authorities have dropped charges against Nader Al-Naji, the founder of decentralized social network BitClout, withdrawing the complaint without prejudice. Last year, he was accused of wire fraud, allegedly defrauding investors of $3 million. The Securities and Exchange Commission (SEC) has also filed to drop its civil charges against Al-Naji, who ran BitClout, a decentralized social network. The project aimed to tokenize Twitter personalities, allowing users to build a following and earn money from their profiles.
Court documents show that the U.S. authorities have scrapped charges against the founder of decentralized social network BitClout. A recent order approved the withdrawal of the complaint without prejudice. The SEC, which had also accused Al-Naji of fraud, filed to drop its civil charges against the entrepreneur. Last year, the regulator alleged that Al-Naji perpetrated a "multi-million-dollar fraudulent crypto asset scheme" and spent the money on himself.
The project had attracted investments from prominent figures in the industry, including Andreessen Horowitz, Coinbase Ventures, and Gemini's Winklevoss twins. However, BitClout had faced criticism, with users complaining about delays in the project's launch.