(2024)
SEC v. BitClout
Year
2024
Criminal or Civil
Civil (SEC case); parallel DOJ criminal action also dismissed
Year Resolved
2025
Jurisdiction (Court/State)
Undisclosed, likely U.S. District Court (federal)
Filed By
U.S. Securities and Exchange Commission (SEC)
Penalty/Fine (USD)
Case dismissed
Lawsuit Overview
The SEC filed a civil enforcement action in 2024 against Nader Al-Naji, founder of BitClout, a decentralized social media and cryptocurrency trading platform, alleging $3 million in wire fraud related to the sale of BitClout tokens. The SEC claimed Al-Naji made false and misleading representations to investors, particularly about the decentralized nature of the platform and his control over investment funds, which were allegedly used for personal expenses and gifts to family members. The lawsuit likely centered on whether BitClout tokens were unregistered securities. On March 19, 2025, a U.S. court dismissed the SEC lawsuit, with both the SEC and DOJ filing motions to drop their respective charges, citing unspecified reasons. The dismissal is seen as a potential setback for the SEC’s crypto enforcement efforts.
Category
Wire Fraud, Potential Unregistered Securities Offering
Notable Individuals Involved
Nader Al-Naji (BitClout founder), Damian Williams (U.S. Attorney, SDNY), Christie M. Curtis (FBI Acting Assistant Director)
Investor Loss Estimate
Approximately $3 million (alleged amount defrauded from Investor-1)
Final Outcome
Dismissed on March 19, 2025, after SEC and DOJ moved to drop charges
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