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SEC Dismisses Fraud Case Against BitClout Founder Nader Al-Naji With Prejudice

Court filings tie the move to the agency’s crypto task force.

Overview

  • The Securities and Exchange Commission agreed in a joint stipulation to drop its civil lawsuit against Nader Al-Naji, with the filing entered in the Southern District of New York.
  • The dismissal is with prejudice and carries no penalties for Al-Naji, closing the door on refiling the same claims.
  • The SEC said it reevaluated the evidentiary record and circumstances of the case before determining dismissal was appropriate.
  • The July 2024 complaint had accused Al-Naji of an unregistered offering of BitClout’s BTCLT token, asserting centralized control and alleging misuse of investor funds.
  • A separate Department of Justice criminal case was dropped in 2025, and the SEC’s filing references its crypto task force launched in January 2025 as part of a broader enforcement shift.