The U.S. securities regulator has agreed to dismiss its lawsuit against Al-Naji, a crypto entrepreneur.
The decision came after a joint agreement between the U.S. Securities and Exchange Commission and the crypto founder, Nader Al‑Naji. Initially, the case was filed in a federal court in New York and also involved several related individuals and other organizations connected to the project.
The case was originally filed in July 2024 in the United States District Court for the Southern District of New York. In the lawsuit, the authorities accused Al-Naji and some other associated entities of violating securities laws through activities connected to the decentralized social media project DeSo.
However, in the new court filing, both sides have agreed to dismiss the litigation. The agreement was submitted as a joint stipulation asking the court to close the case.
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The filing states that the SEC reassessed the facts and evidence connected to the claims. After they successfully looked into the case and reviewed the record considering the circumstances of the case, the agency concluded that dismissing the lawsuit was appropriate.
Source: sec.gov
The dismissal also applies to several relief defendants linked to the case, including family members and companies related to the crypto mogul. These include Buse Desticioğlu Al-Naji, Joumana Bahouth Al-Naji, Intangible Holdings LLC, Firestorm Media LLC, Viridian City LLC, and the DeSo Foundation.
The SEC Regulatory Review and Crypto Policy
The filing also referenced some internal changes within the SEC. In January 2025, the agency created a crypto-focused task force aimed at developing a clearer regulatory framework for digital assets.
The authority noted that its decision to dismiss this case was made after reviewing the evidence and the particular facts surrounding this particular dispute. However, the agency clarified that the dismissal does not represent its position on other crypto-related cases.
Under the agreement, the case will be permanently closed for the issues mentioned in the original complaint. This means those specific claims cannot be filed again in court.
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