ChainCatcher report, according to CoinDesk, the U.S. Securities and Exchange Commission (SEC) has dismissed its civil enforcement action against BitClout founder Nader Al-Naji. According to a joint filing submitted to the court, the SEC and Al-Naji have agreed to terminate the proceedings, resulting in the permanent closure of the case, with the regulator barred from re-filing the same allegations. The SEC stated that this decision is “based on the specific facts and circumstances of this case.” It is reported that in 2024, the SEC sued Al-Naji, accusing him of committing wire fraud and selling unregistered securities through the crypto social network project BitClout (later associated with the decentralized social blockchain DeSo). The SEC alleged that he raised approximately $257 million by selling BitClout’s native token, BTCLT, and misappropriated over $7 million in investor funds for personal expenses, including leasing a mansion in Beverly Hills.
U.S. SEC Drops Lawsuit Against BitClout Founder Nader Al-Naji in $257 Million Fundraising Case
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Summary
The U.S. SEC has dismissed its lawsuit against BitClout founder Nader Al-Naji, permanently closing the case. The SEC’s announcement follows allegations of $257 million in unregistered token sales and misuse of investor funds. Al-Naji faced charges related to the 2024 BTCLT fundraising, with claims he spent over $7 million on personal expenses. The SEC cited unique circumstances in its decision. On-chain reports later connected the project to DeSo, a decentralized social blockchain. No refiling is expected.
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