The U.S. Securities and Exchange Commission (SEC) has withdrawn its lawsuit against Nader Al-Naji, founder of BitClout, ending a legal battle that lasted nearly two years. The SEC stated that a reassessment of the evidence made the withdrawal of the lawsuit a reasonable course of action. The original lawsuit was filed in 2024, alleging that Al-Naji raised over $257 million through unregistered BTCLT token sales and diverted over $7 million of those funds for personal use. This withdrawal is part of a larger trend of the SEC withdrawing or suspending cryptocurrency cases, with the SEC having withdrawn or suspended approximately 60% of its cryptocurrency cases since early 2025.

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