SEC Wins $5.4 Million Judgment in NanoBit Crypto Fraud Case

The US Securities and Exchange Commission (SEC) has won its fraud case against crypto platform NanoBit Limited after accusing the company of running a fake trading operation that targeted investors through social media and WhatsApp groups.

A federal court in New York issued a final judgment on June 16 against four entities and two individuals connected to the scheme. According to the SEC, NanoBit operators posed as financial professionals and convinced at least 18 investors between 2023 and 2024 to deposit funds into a fraudulent crypto platform.

Fake Trading Platform and Misused Investor Funds

The SEC said investors were shown fake dashboards displaying false profits and were told that NanoBit affiliate NanobitUS Securities was registered with the regulator. The platform also promoted fake initial coin offerings promising large returns.

Court Orders Millions in Penalties

NanoBit was ordered to pay nearly $1.8 million, including penalties, disgorgement and interest. Related entities Radiant Horizons, Sweet Karma and Zhao Deli each received $1.18 million fines.

The SEC alleged more than $2 million was transferred to bank accounts in Hong Kong while investors faced withdrawal delays, extra fees and removal from WhatsApp groups after questioning the platform.