Entrepreneur who sought to merge celebrities, social media and crypto faces fraud charges

Securities And Exchange Commission News

Entrepreneur who sought to merge celebrities, social media and crypto faces fraud charges
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NEW YORK (AP) — A California entrepreneur who sought to merge the bitcoin culture with social media by letting people bet on the future reputation of...

with social media by letting people bet on the future reputation of celebrities and influencers has been arrested on a fraud charge.

It said each platform user was able to generate a coin by creating a profile while BitClout preloaded profiles for the “top 15,000 influencers from Twitter” onto the platform and had coins “minted” or created for them. From late 2020 through March 2021, Al-Naji solicited investments to fund BitClout's development from venture capital funds and other prominent investors in the crypto-asset community, the commission said.

In all, BitClout generated $257 million for its treasury wallet from investors without registering, as required, with the Securities and Exchange Commission, the agency said. It said Al-Naji also transferred investor funds to BitClout developers, programmers, and promoters, contrary to his public statements that he wouldn't use investor proceeds to compensate himself or members of BitClout’s development team.Republicans are brushing off a new Democratic attack line seeking to portray them as weird by pointing fingers in the opposite direction.The US gymnast and Rubik's cube enthusiast became an online sensation after helping his team secure a bronze medal.

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