The U.S. Securities and Exchange Commission has dropped its two-year legal case against Nader Al-Naji, founder of the BitClout blockchain platform, with prejudice.
The dismissal, filed in the Southern District of New York, cites a reassessment of evidence and the work of the crypto task force established in January 2025. The regulator emphasized the decision does not set a precedent for other cases.
Al-Naji, a former Google engineer and creator of the DeSo blockchain, was accused in July 2024 of raising over $257 million through the sale of BTCLT tokens while promising funds wouldn’t go to team compensation. He also faced allegations of spending more than $7 million on personal assets, including a Beverly Hills mansion, and misrepresenting BitClout as decentralized when he controlled it.
Under the settlement, Al-Naji waived any right to legal fee reimbursement and cannot be re-prosecuted on the same charges. His mother, wife, and affiliated companies are also protected from future litigation on these claims.
The Department of Justice had previously dismissed a separate wire fraud case against him in February 2025 without prejudice.
