The U.S. Securities and Exchange Commission has dismissed its securities fraud lawsuit against Nader Al‐Naji, who was the creator of the BitClout social platform. According to a court filing in the U.S. District Court for the Southern District of New York, the SEC’s crypto task force reviewed the case and decided to end the litigation. The agency emphasized that the dismissal was based on the specific facts of this case.
Case Details
The SEC originally charged Al-Naji in 2024 over the launch of BitClout in 2021. Regulators claimed that Al-Naji raised more than $257 million by selling BitClout’s native token, BTCLT, to investors without properly registering it as a security. The agency also accused him of misleading investors about how the platform worked and how the funds would be used. According to the SEC’s complaint, about $7 million from the token sales was used for personal expenses.
At the same time, the U.S. Department of Justice ended a separate criminal investigation that had accused Al-Naji of wire fraud related to the same project. As part of the agreement, Al Naji will not seek reimbursement for his legal costs from the SEC. Following the dismissal, Al-Naji said the government spent months investigating the case before deciding to withdraw the charges. He posted a statement on social media, describing the allegations of BitClout’s lack of decentralization as particularly damaging. Al-Naji expressed confidence that these platforms could grow into major blockchain businesses in the future.
Under the administration of Donald Trump, the agency has signaled that it wants to move away from aggressive enforcement actions. The SEC dropped its lawsuit against Justin Sun earlier this month, accusing him of securities law violations related to the TRON ecosystem. With the case now closed, Al-Naji is free to continue developing blockchain projects tied to the DeSo network.
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