The U.S. Department of Justice has dropped the fraud case against Nader Al-Naji, founder of the cryptocurrency social network BitClout. Initially charged with wire fraud for allegedly defrauding investors of $3 million, the decision to drop the case came after a request from New York federal prosecutors. Al-Naji faced claims that he misled investors to access funds, which he supposedly used for personal expenses. Additionally, the Securities and Exchange Commission had previously accused him of running a multimillion-dollar fraudulent scheme but also opted to dismiss its civil charges against him. The recent decisions reflect a shift in the regulatory environment under the new Trump administration, highlighted by a move away from aggressive enforcement toward more constructive engagement with the crypto industry. BitClout aimed to allow users to monetize their online presence, attracting interest from major investors. The withdrawal of charges marks a possible shift in how U.S. authorities approach cryptocurrency-related cases.

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