SEC drops lawsuit against BitClout founder Nader Al-Naji over DeSo crypto project
The SEC has dropped its lawsuit against BitClout founder Nader Al-Naji, ending the case permanently and preventing future claims.Summary
The U.S. Securities and Exchange Commission (SEC) has ended its civil enforcement action against Nader Al-Naji, the founder of BitClout (later associated with DeSo), and related defendants. The decision, based on the specifics of the case, closes the litigation permanently. The SEC initially filed the lawsuit in July 2024, alleging violations of securities laws, wire fraud, and the sale of unregistered securities, claiming Al-Naji raised $257 million and misused over $7 million on personal expenses. The case also involved several relief defendants, including family members and companies associated with the DeSo Foundation. BitClout, launched in 2021, faced criticism for automatically creating profiles without consent and its creator coin model. Despite the controversy, the project had attracted investment from prominent venture firms. Al-Naji and the defendants have waived any claims for fees or damages.
(Source：CoinDesk)