BitCoutout Founder Accused Of Crypto Fraud More Than IDR 4 Trillion

Bitcout founders are accused of crypto fraud of more than IDR 4 trillion (Photo; Doc. Ggtalks)

JAKARTA - The United States Securities and Exchange Commission (SEC) has sued Nader Al-Naji, founder of BitCout (now known as Decentralized Social or DeSo), for alleged millions of dollars worth of crypto fraud schemes. Al-Naji allegedly raised more than 257 million US Dollars (approximately IDR 4 trillion) through the sale of unregistered Bitcout tokens (BTCLT), and the funds turned out to be used for personal purposes.

According to the SEC, Al-Naji started raising these funds since November 2020 using pseudonyms 'Diamondhands' to trick regulatory oversight. He described Bitcout as a decentralization project, creating the illusion that this platform stands alone without personal control.

However, in reality, Al-Naji allegedly used more than 7 million US Dollars (around Rp114 billion) of investor funds for personal purposes, entered to pay rent for the mansion in Beverly Hills and give luxury cash prizes to his family members.

According to Bitcoin.com News information, Gurbir S. Grewal, SEC's Director of Enforcement Division, confirmed that Al-Naji is trying to trick federal securities laws by presenting Bitcout as a fully decentralized fake project.' We are not deceived by cosmetic labels. We always consider economic reality," Grewal said.

In addition to demands from the SEC, the US Prosecutor's Office for the South District of New York also announced the charges against the founder of the Bitcout.

In an increasingly advanced digital era, many investors are interested in investment opportunities in crypto assets. However, the Al-Naji case is an important reminder of the need for thorough vigilance and inspection before investing in this completely unregulated sector.