The Securities and Exchange Commission has dismissed its civil enforcement action against BitClout founder Nader Al-Naji and relief defendants. The case, filed in July 2024, alleged Al-Naji raised over $257 million through unregistered sales of BitClout tokens.
In a joint filing submitted March 12 to the U.S. District Court for the Southern District of New York, the SEC cited a "reassessment of the evidentiary record" as grounds for dismissal. Both parties signed the stipulation within the past two weeks.
Al-Naji, a former Google engineer, created BitClout-a decentralized social network that tokenized user profiles. The platform attracted investment from Andreessen Horowitz, Coinbase Ventures, and Gemini founders Tyler and Cameron Winklevoss.
The Department of Justice had separately charged Al-Naji with wire fraud, claiming he misused investor funds. That case was dropped in March 2024 without prejudice. Now, with the SEC case also closed, Al-Naji faces no active U.S. government litigation.
The dismissals align with a broader shift under the current administration, which has ended several high-profile crypto enforcement actions, including those against Ripple and Coinbase.