SEC drops fraud case against BitClout founder Nader ‘Diamondhands’ Al-Naji
The SEC has dismissed its fraud case against BitClout/DeSo founder Nader Al-Naji, citing a reevaluation of the evidence.Summary
The US Securities and Exchange Commission (SEC) has dropped its civil fraud lawsuit against Nader Al-Naji, the founder of BitClout, now rebranded as DeSo. The SEC initially filed the lawsuit in July 2024, alleging that Al-Naji conducted an unregistered securities offering through the sale of BTCLT tokens. The SEC claimed Al-Naji misrepresented BitClout as a decentralized platform while maintaining control over key aspects like token issuance and treasury funds, allegedly using investor money for personal expenses. However, after reevaluating the evidence, the SEC decided dismissal was appropriate, and the case was dismissed with prejudice. Al-Naji founded BitClout in 2021 as a decentralized social platform attracting investment from firms like a16z and Sequoia, but it faced criticism regarding data scraping and decentralization, leading to the DeSo rebranding. Prior to BitClout, Al-Naji launched the algorithmic stablecoin project Basis, which also attracted significant investment before shutting down.
(Source：Crypto Briefing)