Business

SEC & DOJ Drop Charges Against BitClout Founder

U.S. authorities have dropped charges against Nader Al-Naji, the founder of BitClout, after legal disputes over fraud and unregistered securities.

Haider Jamal
March 19, 2025

Misusing Investor Funds

On February 28th, U.S. Magistrate Judge Henry J. Ricardo granted the request to dismiss the case without prejudice, marking a significant shift in the legal battle.

Source: U.S. SEC

The SEC, which had accused Al-Naji of fraud, also dropped its civil charges in late February. The agency had alleged he misused investor funds for personal expenses, including a Beverly Hills mansion and gifts for his family.

Al-Naji’s Legal Issues

Al-Naji’s troubles began in March 2021 when he was arrested for wire fraud and selling unregistered securities. The SEC claimed he misled investors by presenting BitClout as a decentralized project.

Nader also raised $257 million through the sale of BitClout’s native token, BTT, but allegedly diverted $7 million for personal use.

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Haider Jamal

Content Strategist

Haider is a fintech enthusiast and Content Strategist at CryptoWeekly with over four years in the Crypto & Blockchain industry. He began his writing journey with a blog after graduating from Monash University Malaysia. Passionate about storytelling and content creation, he blends creativity with insight. Haider is driven to grow professionally while always seeking the next big idea.