The US Securities and Exchange Commission has dismissed its case against BitClout founder Nader Al-Naji, ending a civil action tied to $257 million in alleged unregistered securities sales.
The case, originally filed in July 2024, was dropped following what the regulator described as a reassessment of the evidentiary record, with a joint filing submitted to a New York federal court on March 12.
“In the exercise of its discretion, the Commission believes dismissal of the claims against Defendant and Relief Defendants is appropriate,”
Said the US Securities and Exchange Commission in its filing.
Al-Naji, a former Google engineer, created the decentralised social media platform BitClout, which allowed users to tokenise Twitter profiles and required Bitcoin exchanges for native tokens.
The platform previously attracted backing from major investors including Andreessen Horowitz and Coinbase Ventures, as well as Gemini founders Tyler and Cameron Winklevoss, and following the announcement the BitClout share price was unchanged at $0.
The SEC’s dismissal follows an earlier decision by the Department of Justice to drop wire fraud charges against Al-Naji in March, marking a full resolution of the parallel legal actions.