SEC Drops Case Against BitClout Founder Nader Al-Naji

The U.S. Securities and Exchange Commission (SEC) has dismissed its two-year lawsuit against Nader Al-Naji, founder of the BitClout social media platform and DeSo blockchain. The dismissal was filed in a joint stipulation, citing a "reassessment of the evidentiary record" and the upcoming crypto task force set for January 2025. The SEC emphasized that this dismissal is based on the specific facts of this case and does not set a precedent for future actions. The original July 2024 complaint accused Al-Naji of raising over $257 million via the BTCLT token while allegedly misusing funds for personal expenses, like a Beverly Hills mansion, and misrepresenting the platform as decentralized. The case was dismissed with prejudice, preventing the SEC from refiling the same charges. Separately, the Department of Justice also dropped its wire fraud case against Al-Naji without prejudice in February 2025.

(Source：Cointelegraph)