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.
