SEC Drops Lawsuit Against BitClout Founder Nader Al-Naji

BitClout is a blockchain-based social media platform launched by Nader Al-Naji in 2021. The U.S. Securities and Exchange Commission sued him on July 30, 2024, alleging that he raised more than $257 million through unregistered sales of BTCLT and misappropriated more than $7 million to pay rent on a Beverly Hills mansion and make gifts to family members. The case therefore raised questions about the regulatory line for determining whether crypto assets are securities.

On March 12, 2026, the SEC and Al-Naji filed a joint stipulation of dismissal with the U.S. District Court for the Southern District of New York. Following the Crypto Task Force's reassessment of the evidentiary record, the case was dismissed with prejudice, meaning the same claims cannot be refiled. The task force was established in January 2025. The SEC stressed that its decision was based solely on the facts of this case and did not reflect its position in other enforcement actions. Al-Naji also waived any claim for legal fees.