If you’ve watched the TV series Silicon Valley or have even a basic understanding of Silicon Valley’s tech history, you’ve probably heard the phrase: “Fake it till you make it.” This essentially means pretending to have something figured out until it actually becomes reality. To some extent, this mindset is embedded in many of the technologies, products, and services that have reshaped our lives today. One of the most classic examples occurred in January 2007, when Steve Jobs unveiled the first iPhone. The prototype he held in his hand was far from a fully functional device, both in terms of hardware and software. It was only through the relentless efforts of Apple’s engineers over the following months that the iPhone was finally ready for commercial release in June of that year. In Silicon Valley, it has become almost standard practice for tech companies to promise a futuristic vision that hasn’t quite materialized yet.
For everyday consumers, delays in product launches or minor glitches in a new app may be inconvenient but are rarely disastrous. However, when this “fake it till you make it” approach is applied to the investment world, the consequences can be far more severe—often costing investors millions, if not billions, of dollars. In a shocking turn of events, one particularly smooth-talking young entrepreneur managed to pull off one of Silicon Valley’s most brazen scams, fooling even top-tier venture capital firms like Sequoia Capital, Andreessen Horowitz (a16z), and Google Ventures—not just once, but twice! These seasoned investors, who pride themselves on their ability to spot the next big thing, were completely taken in by what was essentially a glorified knockoff of a social media platform. In the end, they collectively poured over $300 million into what turned out to be nothing more than a vehicle for the founder’s personal extravagance.
That young entrepreneur is Nadav Al-Naji, the founder of the cryptocurrency-based social platform BitClout. But what exactly made Al-Naji so persuasive? And how did he manage to fool these high-profile venture capitalists twice? Today, let’s take a deep dive into his story.
The Allure of a Polished Resume
A cunning fraudster often has an impressive “veneer,” and in Al-Naji’s case, that veneer was his stellar academic and professional background—one of the key reasons he was able to attract investors. Al-Naji graduated from Princeton University with a degree in computer science. During his time there, he stood out as a star student—not only was he good-looking and a standout member of the Princeton rowing team, but he was also incredibly smart, graduating a year early with top honors. His fascination with cryptocurrency began in college, where he even mined dozens of Bitcoin using Princeton’s free electricity and computing power. This early exposure laid the foundation for his future ventures in the crypto space.
Like many Ivy League graduates, Al-Naji’s career started off in a highly enviable position. After graduating, he worked as a software engineer at prestigious firms such as hedge fund giant D.E. Shaw and Google. However, he lasted less than three years before deciding to embark on his own entrepreneurial journey. In 2017, at just 25 years old, he quit Google and founded Basis, a cryptocurrency startup focused on algorithmic stablecoins. Within just six months, he managed to raise a staggering $133 million in funding from elite venture capital firms, including Bain Capital, Google Ventures, a16z, and Lightspeed Venture Partners.
Beyond his impressive resume, Al-Naji possessed a natural charisma that made him highly persuasive. He was outgoing, had a bright, confident smile, and exuded the energy of a young, ambitious elite. He spoke rapidly, jumped between complex ideas, and peppered his speech with technical jargon and cutting-edge concepts, making it difficult for listeners to keep up. Many found themselves overwhelmed by his seemingly brilliant vision, much like the effect Sam Bankman-Fried of FTX had on investors.
The Basis Debacle: A Warning Ignored
Al-Naji’s pitch for Basis was compelling: unlike traditional stablecoins backed by reserves, Basis would use an algorithm to regulate its value. If Basis traded above $1, the system would automatically issue new tokens to stabilize the price; if it fell below $1, the system would issue bonds to increase demand. He confidently claimed this was a revolutionary innovation that would transform the financial system.
However, even in 2017, skeptics voiced concerns that Basis resembled a Ponzi scheme. Cryptocurrency legal expert Preston Byrne warned that algorithmic stablecoins were fundamentally flawed. But that didn’t stop prominent investors from backing the project. Yet, just nine months after securing $133 million, Al-Naji abruptly shut Basis down. He cited increasing regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC) as the primary reason and promised to return the funds to investors—though he conveniently kept $10 million, claiming it had been spent on operational costs. Investors, impressed by his supposed integrity, continued to trust him. They failed to realize that an even bigger scam was just around the corner.
BitClout: A $200 Million Pump-and-Dump Scheme
Wasting no time, Al-Naji launched his next venture in 2019: BitClout. This time, he claimed to be creating a “fully decentralized” social network, an antidote to the monopolistic control of major tech giants like Facebook and Twitter. BitClout’s unique angle? It allowed users to buy and sell tokens linked to individuals' reputations.
To kickstart the platform, Al-Naji took an audacious approach—he scraped Twitter for data and pre-created profiles for 15,000 celebrities, including Elon Musk and Singapore’s former Prime Minister Lee Hsien Loong, without their consent. This deceptive strategy created the illusion of rapid adoption. When Lee Hsien Loong publicly denied any affiliation with BitClout, it was clear the platform was built on dubious ethical ground.
Despite these red flags, venture capital firms once again poured money into Al-Naji’s vision. Sequoia Capital, a16z, and the Winklevoss twins’ fund invested over $200 million. At the height of the 2021 crypto boom, BitClout’s token soared from an initial offering price of $6 to a staggering $200. Early investors made enormous profits, riding the speculative frenzy.
However, cracks soon appeared. BitClout’s Bitcoin wallet initially held 5,039 BTC (over $350 million at the time). By the time authorities intervened, only 2,525 BTC remained—$170 million had vanished, with no clear explanation.
Sensing trouble, Al-Naji attempted to distance himself from BitClout, rebranding it as a decentralized project “owned by the community” and moving on to launch yet another crypto venture, DAODAO. But by this point, his antics had finally caught up with him.
The Inevitable Reckoning
Last month, Al-Naji was officially indicted in New York. The U.S. Department of Justice charged him with fraud, alleging he misled investors, illegally issued tokens, and misused millions for personal extravagance and family transfers. If convicted, the 32-year-old could face up to 20 years in prison.
The SEC has also filed civil charges against him, accusing him of defrauding investors by falsely presenting BitClout as a decentralized network while secretly manipulating its token issuance.
Unsurprisingly, Al-Naji has pleaded not guilty, claiming the charges are baseless. He has assembled a high-powered legal team in hopes of negotiating a settlement to avoid jail time.
A Pattern of Fraudulent “Forbes 30 Under 30” Entrepreneurs
Al-Naji joins a growing list of disgraced entrepreneurs who once graced Forbes’ “30 Under 30” list, including:
- Elizabeth Holmes (Theranos) – 11 years in prison for fraudulent blood testing claims.
- Sam Bankman-Fried (FTX) – 25 years for misappropriating billions in customer funds.
- Martin Shkreli – 5 years for price-gouging life-saving drugs.
- Trevor Milton (Nikola) – 4 years for defrauding investors with fake hydrogen truck tech.
- Charlie Javice (Frank) – Pending trial for falsifying user data to scam JPMorgan.
Al-Naji’s trial date remains uncertain, but one thing is clear: Silicon Valley’s obsession with bold, charismatic founders often blinds even the most experienced investors to glaring red flags.