SEC dismisses civil fraud case against BitClout, DeSo founder Nader Al-Naji with prejudice

The U.S. Securities and Exchange Commission (SEC) has formally dropped its civil fraud case against Nader Al-Naji, the founder of BitClout and DeSo, through a joint stipulation filed in the Southern District of New York. The dismissal is with prejudice, preventing the SEC from refiling the same claims. The SEC had originally sued Al-Naji in July 2024, alleging he raised over $257 million from unregistered token sales while misusing funds for personal expenses. This civil resolution follows the Department of Justice's earlier decision to withdraw its parallel criminal wire fraud charge without prejudice in February 2025. Al-Naji has consistently asserted his innocence, claiming investigators found no wrongdoing. This dismissal is notable as it resolves a case centered on fraud allegations, unlike many other recent SEC crypto enforcement retreats that focused on token classification issues.

(Source：The Block)