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U.S. SEC Dismisses Civil Fraud Case Against BitClout and DeSo Founder Nader Al-Naji

U.S. SEC Dismisses Civil Fraud Case Against BitClout and DeSo Founder Nader Al-Naji

According to a March 12 joint filing in the Southern District of New York, the SEC permanently ended its civil case against Nader Al-Naji and cannot refile the same BitClout-related securities claims.

Fact Check
Multiple reputable financial and crypto news outlets (CoinDesk, The Block) report that the SEC filed a joint stipulation on March 12, 2026, to dismiss the civil fraud case against Nader Al-Naji with prejudice. The dismissal ends the litigation regarding the $257 million BTCLT token sale and allegations of fund misuse.
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Summary

The U.S. Securities and Exchange Commission has permanently ended its civil enforcement case against BitClout and DeSo founder Nader Al-Naji. According to a March 12 joint stipulation filed in the Southern District of New York, the case was dismissed with prejudice, preventing the SEC from bringing the same securities claims again. The SEC had sued Al-Naji in July 2024, alleging that he raised about $257 million through sales of the BTCLT token in an unregistered securities offering and misused more than $7 million of investor funds for personal expenses. The case also named several related entities and individuals as relief defendants, and the filing states that Al-Naji and those defendants waived any claims for attorney’s fees or damages tied to the investigation or litigation.

Terms & Concepts
  • BTCLT: The native token tied to BitClout that was central to the SEC’s allegations of an unregistered securities offering.
  • DeSo: A blockchain project associated with decentralized social media that became linked to BitClout and to Nader Al-Naji.
  • relief defendants: Parties named in a case not primarily accused of wrongdoing but alleged to hold assets connected to the disputed conduct.