[U.S. SEC Drops Civil Fraud Lawsuit Against BitClout Founder] According to The Block, the U.S. SEC has officially dropped its civil enforcement lawsuit against BitClout and DeSo founder Nader Al-Naji and six other defendants, as per a joint agreement filed with the U.S. District Court for the Southern District of New York. The SEC is barred from refiling the same lawsuit. The SEC initially sued Al-Naji in July 2024, accusing him of raising over $257 million through the unregistered sale of the native token BTCLT of the blockchain-based social media platform BitClout, while promising investors that the funds would not be used to compensate himself. The SEC alleged that he used over $7 million for personal expenses, including paying rent for a Beverly Hills mansion and gifting cash to family members. Al-Naji's wife, mother, and several affiliated entities were also named as co-defendants.