The U.S. SEC dismisses the lawsuit against BitClout founder Nader Al-Naji, marking the end of the $257 million financing case

The U.S. Securities and Exchange Commission (SEC) has dismissed the civil enforcement action against BitClout founder Nader Al-Naji. According to joint documents submitted to the court, the SEC and Al-Naji agreed to terminate the case, which will be permanently closed, and the regulatory agency cannot bring another lawsuit on the same charges. The SEC stated that this decision is "based on the specific facts and circumstances of the case."

It is reported that the SEC had sued Al-Naji in 2024, accusing him of committing telecommunications fraud and selling unregistered securities through the crypto social network project BitClout (later associated with the decentralized social blockchain DeSo). He allegedly raised about $257 million by selling the native token BTCLT of BitClout and is suspected of using over $7 million of investor funds for personal expenses, including leasing a mansion in Beverly Hills.