PANews, March 15: According to The Block, based on a joint agreement filed with the U.S. District Court for the Southern District of New York, the U.S. SEC has formally withdrawn its civil enforcement action against Nader Al-Naji, founder of BitClout and DeSo, and six other defendants, with no right to refile the same claims. The SEC originally sued Al-Naji in July 2024, alleging that he raised over $257 million by selling the native token BTCLT of the blockchain-based social media platform BitClout without registration, while promising investors that the funds would not be used to compensate him personally. The SEC claimed that Al-Naji diverted more than $7 million for personal expenses, including rent for a Beverly Hills mansion and cash gifts to family members. Al-Naji’s wife, mother, and several affiliated entities were also named as co-defendants.
U.S. SEC Drops Civil Fraud Case Against BitClout Founder
PANewsShare
Summary
The U.S. SEC has dismissed its civil fraud case against BitClout founder Nader Al-Naji and six others, according to a court filing in New York. The lawsuit, filed in July 2024, alleged that Al-Naji raised $257 million through unregistered BTCLT tokens and spent $7 million on personal expenses. His wife, mother, and associated entities were also named as defendants. As BTC continues to serve as a hedge against inflation, regulatory oversight remains a critical factor for cryptocurrency projects. The case also raised concerns under the CFTC due to the substantial sums involved.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.