The U.S. Securities and Exchange Commission has dismissed its civil fraud case against Nader Al-Naji, founder of the social blockchain projects BitClout and DeSo, according to The Block. The regulatory agency had accused Al-Naji of raising more than $257 million through unregistered offerings of the BTCLT token.
The SEC's decision to dismiss the case marks a significant development in an ongoing regulatory dispute over whether DeSo's token sale constituted an unregistered securities offering. The dismissal suggests either a settlement or withdrawal of the agency's enforcement action, though specific terms have not been disclosed. The case had been closely watched by the crypto industry as part of broader SEC scrutiny of token launches and blockchain-based social networks.