The U.S. Securities and Exchange Commission (SEC) has decided to terminate multiple lawsuits against Nader Al-Naji, who was accused of misleading investors and violating federal securities laws in connection with the launch of the BitClout platform.
However, the filing cautioned that the decision should not be interpreted as a shift in broader policy or automatically applicable to other crypto-related cases.
“The Commission’s choice to exercise its discretion and seek dismissal of this case is based on the specific facts and circumstances of this matter,” the filing stated.
Al-Naji, a former Google engineer and founder of the DeSo blockchain, was first charged by the SEC in 2024, just a few years after BitClout launched in March 2021. The platform subsequently received a cease-and-desist order.
The commission also accused Al-Naji of using funds raised from investors to sustain a lavish personal lifestyle. According to the SEC, approximately $7 million in proceeds were used to rent a mansion in Beverly Hills and give cash gifts to family members.
Regulators further alleged that Al-Naji misrepresented the platform’s internal workings, claiming BitClout was fully decentralized despite his behind-the-scenes control of the project.
The case has now been dismissed under settlement terms, with Al-Naji agreeing to waive any claims for reimbursement of legal fees or expenses from the SEC.
Meanwhile, the U.S. Department of Justice also concluded its parallel criminal case against Al-Naji, which accused him of wire fraud.
Al-Naji stated: “Perhaps the most heartbreaking allegation is the government’s claim that BitClout/DeSo (the blockchain I’ve been working on for years) isn’t fully decentralized… In the short term, I have significant plans for DeSo, Focus, Openfund, and HeroSwap (the core products of my team). Each is the best in its class and potentially a billion-dollar business opportunity on its own. Now that I can operate without shackles and my reputation and network are restored, I believe we will achieve this potential.”
The SEC’s stance appears to have shifted.