The U.S. Securities and Exchange Commission (SEC) has decided to withdraw its two-year lawsuit against Nader Al-Naji, the founder of the blockchain social media platform BitClout.
In a statement, the SEC indicated that its decision was based on the specific facts and circumstances of the case, emphasizing that this does not represent the Commission's stance in other cases. Cointelegraph has reached out to the SEC and DeSo blockchain, led by Al-Naji, for comments on this matter.
Al-Naji, a former Google engineer, is also the founder of the Basis protocol and the creator of the DeSo blockchain. He launched BitClout in March 2021.
Previously, Al-Naji was accused of using over $7 million for personal expenses, including renting a mansion in Beverly Hills and gifting cash to family members. Additionally, he was accused of falsely promoting the platform as decentralized, despite allegedly controlling the project behind the scenes while claiming there was no company in control.
As part of the settlement, Al-Naji has waived any rights to seek legal fees or expenses from the SEC. The regulatory agency has “dismissed the case with prejudice,” meaning the SEC cannot refile charges against Al-Naji or the mentioned relief defendants, including his mother, wife, and several companies he controls.
