SEC Lands $5.5 Million Default Win Over Alleged NanoBit Scheme

Here’s a sharper, more compact rewrite with a polished news tone:

The perpetrators built trust with investors عبر WhatsApp before channeling funds to Hong Kong bank accounts instead of carrying out genuine crypto trades.

A federal judge in New York has handed down a $5.5 million default judgment against NanoBit Limited and five associated defendants tied to an alleged relationship-driven crypto investment scam.

On June 16, the U.S. District Court for the Eastern District of New York ordered $5,518,902 in disgorgement, prejudgment interest, and civil penalties, the U.S. Securities and Exchange Commission (SEC) said.

According to the SEC, between September 2023 and June 2024, the defendants posed as financial professionals in WhatsApp groups, built credibility, and persuaded investors to deposit funds into the NanoBit platform.

While the platform displayed fabricated gains, no real crypto transactions took place, the regulator alleged. At least 18 investors lost close to $1 million in crypto and fiat assets.

Instead of trading, funds were routed to Hong Kong accounts, with more than $2 million transferred offshore and large amounts of crypto misappropriated.

NanoBit also falsely claimed that its affiliate, NanobitUS Securities, was registered with the SEC and linked to established financial institutions.

The defendants—NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, and Hua Zhao—did not appear in court. The judge ruled the default was willful and found no valid defense.

NanoBit Limited faces the heaviest penalties, including over $532,000 in disgorgement, nearly $82,000 in interest, and a $1.1 million fine. The three other corporate entities were each fined $1.1 million, while Liu and Zhao must pay $120,000 and $55,000, respectively, within 30 days.

The court also permanently barred all six defendants from violating federal anti-fraud laws and from participating in securities offerings or transactions, though Liu and Zhao may still trade in personal accounts.

The SEC filed the case in September 2024 alongside a parallel action targeting another alleged fake platform, CoinW6, marking some of its first enforcement moves against relationship-based crypto scams. A seventh defendant, Fei Liao, was named in the original complaint but was not included in the default judgment.