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 celebrities and influencers has been arrested on a fraud charge.
Nader Al-Naji, 32, was arrested in Los Angeles on Saturday on a wire fraud charge filed against him in New York, and civil claims were brought against him by federal regulatory authorities on Tuesday.
He appeared in federal court on Monday in Los Angeles and was released on bail.
Authorities said Al-Naji lied to investors who poured hundreds of millions of dollars into his BitClout venture. They say he promised the money would only be spent on the business but instead steered millions of dollars to himself, his family and some of his company’s workers.
A lawyer for Al-Naji did not respond to an email seeking comment.
The Securities and Exchange Commission said in a …