SEC Withdraws Lawsuit Against BitClout Founder

The U.S. Securities and Exchange Commission (SEC) has officially withdrawn its civil enforcement lawsuit against BitClout and DeSo founder Nader Al-Naji and six other defendants. According to PANews, this decision was formalized in a joint agreement submitted to the U.S. District Court for the Southern District of New York, and the SEC is barred from refiling the same lawsuit. The SEC initially filed the lawsuit against Al-Naji in July 2024, accusing him of raising over $257 million through the unregistered sale of BTCLT, the native token of the blockchain-based social media platform BitClout. The SEC alleged that Al-Naji promised investors that the funds would not be used for his personal benefit. However, it claimed that he spent over $7 million on personal expenses, including renting a Beverly Hills mansion and gifting cash to family members. Al-Naji's wife, mother, and several affiliated entities were also named as co-defendants in the case.