The US Securities and Exchange Commission (SEC) has secured a fraud judgment against NanoBit Limited, ending a case that began with allegations of a crypto-linked investment scam involving WhatsApp outreach and a fake trading platform.
According to the SEC, the agency brought the suit after it accused NanoBit’s operators of taking funds from at least 18 investors between 2023 and 2024—funds it said were diverted to insiders rather than used to operate a legitimate platform.
Key takeaways
- The SEC alleges NanoBit used impersonation and social media outreach to lure investors into depositing money into a fake platform.
- The SEC’s Monday announcement came after an Eastern District of New York court entered a final judgment on June 16 against multiple entities and individuals tied to the case.
- The court imposed permanent injunctions against the defendants, barring them from participating in the issuance, purchase, or sale of securities.
- NanoBit and its affiliates were ordered to pay multiple components including fines, disgorgement, and prejudgment interest, totaling nearly $1.8 million for the company-related parties.
SEC wins against NanoBit in a WhatsApp-driven fraud
The SEC said the scheme centered on how victims were recruited and what they were led to believe once they engaged. In its Monday litigation release, the agency described an approach in which NanoBit’s operators allegedly impersonated financial professionals within WhatsApp groups to convince investors to deposit funds.
Instead of reflecting trading activity, the SEC alleged the platform served as a stage to manufacture credibility and performance. The regulator claimed investors were shown a fake dashboard portraying rising returns, designed to give the appearance that their money was increasing.
To further strengthen the illusion, the SEC alleged the operators falsely represented that an affiliate—NanobitUS Securities—was an SEC-registered broker. The SEC also alleged that the platform promoted supposed token offerings, including fake initial coin offerings (ICOs) promising substantial returns.
Court findings and the size of the penalties
The SEC’s announcement referred to the court’s final judgment entered in the Eastern District of New York on June 16 against four entities and two individuals tied to the NanoBit fraud. The judge found that the defendants violated US securities laws and issued permanent injunctions preventing them from engaging in securities-related conduct.
As part of the enforcement outcome, the court ordered monetary relief that included a fine, disgorgement, and prejudgment interest. The SEC said NanoBit Limited was ordered to pay a $1.18 million fine, disgorgement of more than $532,000 for ill-gotten gains, and nearly $81,200 in prejudgment interest, for a combined total of nearly $1.8 million.
In addition, the SEC said NanoBit’s affiliates—Radiant Horizons, Sweet Karma, and Zhao Deli—each received $1.18 million fines. One of the alleged orchestrators, Jiajie Liu, was ordered to pay approximately $120,000 in penalties, disgorgement, and prejudgment interest.
What the SEC says happened to investors’ money
In the SEC’s September 2024 complaint, the regulator alleged that solicitation began outside the WhatsApp environment. It said NanoBit investors were contacted on social media, including Instagram, before being moved into WhatsApp groups tied to the scheme.
Once participants were onboarded, the SEC claimed the “NanoBit platform” never executed any real transactions. Instead, it said investors’ funds were directed to scheme participants, including bank accounts in Hong Kong, where the money was allegedly misappropriated.
The SEC further alleged that the amount taken from investors involved both fiat deposits and mismanagement of investors’ crypto assets. It said hundreds of thousands of dollars’ worth of investors’ crypto holdings were taken and routed to individuals connected to the fraud.
When investors attempted to withdraw, the SEC alleged they were confronted with excuses and asked to pay large fees. It also said some victims were removed from the WhatsApp groups after questioning whether the platform was legitimate.
Another data point in the SEC’s ongoing crypto fraud enforcement
The NanoBit ruling adds to a broader enforcement pattern in which the SEC targets crypto-themed scams that rely on messaging apps, fabricated performance, and false claims about regulatory status.
The SEC release also situated this case within continued scrutiny under the agency’s crypto enforcement efforts. It noted other recent fraud actions, including a May 29 charge against a Texas man accused of raising more than $12 million from roughly 150 investors by claiming to use AI-powered trading bots to generate guaranteed returns, and an April action against crypto executive Donald Basile and two companies he controlled for allegedly raising roughly $16 million from hundreds of investors through false claims tied to a token described as Bitcoin Latinum.
For investors, the practical takeaway is that the mechanics of the NanoBit allegations—social media recruitment, WhatsApp group pressure, and a “dashboard” narrative—mirror tactics frequently used in retail scams across asset classes. In particular, the SEC’s focus on impersonation and fabricated investment performance underscores how easily victims can be pulled into believing returns when verification is absent.
Going forward, traders and retail participants should watch for whether additional orders or parallel actions affect other individuals or entities connected to the WhatsApp outreach and alleged offshore fund routes, and whether the SEC’s detailed allegations prompt further scrutiny of similar “copy trading” and dashboard-based pitches that promise regulated brokerage status or guaranteed outcomes.
https://www.cryptobreaking.com/sec-secures-5-4m-judgment/?utm_source=blogger%20&utm_medium=social_auto&utm_campaign=SEC%20Secures%20$5.4M%20Judgment%20in%20NanoBit%20Crypto%20Fraud%20Case%20
Comments
Post a Comment