According to a report by Golden Finance, in November 2020, Nader Al-Naji raised over $257 million illegally through an unregistered BTCLT issuance and sales activity. The SEC's complaint document alleges that Al-Naji misled investors during this process, concealing the fact that the funds were intended to pay his own salary and that of other BitClout employees. Furthermore, Al-Naji portrayed BitClout as a decentralized project to avoid regulatory scrutiny and created an impression that it was supported by no tangible company.