The U.S. Securities and Exchange Commission (SEC) has dropped a civil fraud lawsuit against the founder of BitClout.

CoinFeed reported on March 15th that, according to The Block, the U.S. Securities and Exchange Commission (SEC) has formally dismissed its civil enforcement lawsuit against BitClout and DeSo founder Nader Al-Naji and six other defendants, and is prohibited from filing the same lawsuit again, based on a joint agreement filed in the U.S. District Court for the Southern District of New York. The SEC initially sued Al-Naji in July 2024, accusing him of raising over $257 million by selling BitClout's native token BTCLT through unregistered means, promising investors that the funds would not be used to compensate him personally. The SEC stated that he used over $7 million for personal expenses, including paying rent for his Beverly Hills mansion and giving cash gifts to family members.