Wu said that he learned that the U.S. SEC accused Nader Al-Naji, the founder of the open source decentralized social network BitClout, of fraud and issuance of unregistered crypto asset securities. According to the lawsuit, starting in November 2020, Al-Naji raised more than $257 million through unregistered BTCLT issuance and sales, while lying that the proceeds would not be used to compensate him or other BitClout employees. In fact, Al-Naji used more than $7 million of investor funds for personal expenses, such as paying rent for a Beverly Hills mansion and lavish cash gifts for his family. At the same time, in order to evade regulation, Al-Naji portrayed BitClout as a decentralized project with "no company behind it, only tokens and codes", and used the pseudonym "Diamondhands" to launch the project, further creating the illusion of the project's autonomy, when in fact he was the driving force behind the project.