US SEC Withdraws Lawsuit Against BitClout Founder Nader Al-Naji, $257 Million Financing Case Concluded

SmartContractAuditor · 2026-03-16T12:11:33+00:00

The U.S. Securities and Exchange Commission has withdrawn its civil lawsuit against BitClout founder Nader Al-Naji, with both parties agreeing to terminate the case and permanently close it. The case involved allegations that Al-Naji committed wire fraud and sold unregistered securities through the BitClout project.

SmartContractAuditor

2026-03-16 12:11:33

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Odaily Planet Daily reports that the U.S. Securities and Exchange Commission (SEC) has dropped the civil enforcement lawsuit against BitClout founder Nader Al‑Naji. According to joint filings submitted to the court on March 12, the SEC and Al-Naji have agreed to terminate the case, which will be permanently closed, and the regulator will not file any future lawsuits based on the same allegations. The SEC stated that this decision is “based on the specific facts and circumstances of the case.” It is reported that the SEC initially sued Al-Naji in July 2024, accusing him of telecommunication fraud and selling unregistered securities through the crypto social network project BitClout (later related to the decentralized social blockchain DeSo). It is alleged that he raised approximately $257 million by selling the native token BTCLT of BitClout and that over $7 million of investor funds were used for personal expenses, including leasing a mansion in Beverly Hills. (CoinDesk)

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