The U.S. Securities and Exchange Commission has dismissed its case against Nader Al-Naji, the founder of the blockchain social media platform BitClout. The regulator cited a reassessment of the evidence and the formation of a 2025 crypto regulatory task force as reasons. The dismissal, filed with prejudice, prevents the SEC from refiling the same charges, which had accused Al-Naji of raising over $257 million while misleading investors.
The U.S. Securities and Exchange Commission (SEC) has dropped its two-year case against Nader Al-Naji, founder of the blockchain-based social media platform BitClout. The joint dismissal was filed in a New York district court.
The SEC cited a “reassessment of the evidentiary record” and a crypto task force created in January 2025 as the bases for dismissal. The regulator cautioned that this outcome does not set a precedent for other cases.
“The Commission’s decision to exercise its discretion and seek dismissal of this litigation is based on the particular facts and circumstances of this case and does not necessarily reflect the Commission’s position on any other case,” it stated. The SEC has been dismissing a growing number of crypto enforcement actions under the current administration.
The original July 2024 complaint accused Al-Naji of raising more than $257 million by selling the BitClout token, BTCLT. The SEC alleged he told investors the funds would not pay team members while spending millions personally.
Al-Naji was accused of spending over $7 million on personal items, including rent for a Beverly Hills mansion and cash gifts to family. The SEC also alleged he mischaracterized the platform as decentralized while controlling it himself.
As part of the settlement, Al-Naji has waived claims for reimbursement of legal fees against the SEC. The case was dismissed with prejudice, preventing the regulator from refiling the same charges against him or related parties.
A parallel Department of Justice case accusing Al-Naji of wire fraud was ended without prejudice in February 2025. Al-Naji said last year the government’s case did not hold up under scrutiny.
