SEC Wins $5.4 Million Default Judgment in NanoBit Fake Crypto Platform Fraud Case
U.S. regulator secures landmark court victory against operators of an alleged relationship investment scam that used a fake cryptocurrency trading platform to defraud investors through social media and WhatsApp.
The U.S. Securities and Exchange Commission (SEC) has secured a $5.4 million default judgment against the operators of the alleged fake cryptocurrency trading platform NanoBit, marking a significant milestone in the agency’s crackdown on crypto-related investment fraud. The judgment stems from a civil enforcement action alleging that the defendants orchestrated a sophisticated “relationship investment scam,” commonly known as a pig-butchering scam, to deceive investors.
The final judgment was entered by the U.S. District Court for the Eastern District of New York on June 16, 2026, against four corporate entities and two individuals who failed to respond to the SEC’s lawsuit. The court imposed permanent injunctions barring the defendants from future violations of federal securities laws and ordered them to pay a combined approximately $5.4 million in civil penalties, disgorgement, and prejudgment interest.
According to the SEC, the fraud operated between September 2023 and June 2024. The alleged scammers first contacted victims through social media platforms, including Instagram, before moving conversations to WhatsApp groups, where they posed as experienced financial professionals and cryptocurrency experts. They then persuaded victims to invest through the purported NanoBit crypto trading platform by promising substantial returns.
Investigators allege that NanoBit was never a legitimate cryptocurrency trading platform. Instead of executing real digital asset transactions, investors’ money was allegedly diverted to bank accounts controlled by the scheme’s participants, including accounts in Hong Kong. The SEC further claims that the operators misappropriated hundreds of thousands of dollars in cryptocurrency while displaying fabricated account balances and fake trading profits to convince victims their investments were growing.
The complaint also alleged that the fraudsters falsely represented that an affiliated entity, NanobitUS Securities, was registered with the SEC as a broker-dealer. They further promoted fake initial coin offerings (ICOs) to create an appearance of legitimacy and encourage additional investments from victims seeking high returns in the cryptocurrency market.
When investors attempted to withdraw their funds, the alleged operators reportedly demanded additional payments in the form of taxes or processing fees before releasing the money. According to the SEC, withdrawals were never processed, and some victims who questioned the legitimacy of the platform were removed from WhatsApp groups or cut off from further communication.
Under the court’s order, NanoBit Limited was directed to pay nearly $1.8 million, consisting of civil penalties, disgorgement of allegedly ill-gotten gains, and prejudgment interest. Three affiliated entities—Radiant Horizons, Sweet Karma, and Zhao Deli—were each ordered to pay $1.18 million in civil penalties, while individual defendant Jiajie Liu was ordered to pay approximately $120,000 in penalties and related financial relief.
The NanoBit judgment is regarded as one of the SEC’s first major enforcement victories specifically targeting a relationship-based cryptocurrency investment scam. While the agency has recently adopted a more measured regulatory approach toward legitimate digital asset businesses, it has emphasized that enforcement against fraudulent crypto investment schemes remains a top priority.
Financial regulators continue to warn investors against unsolicited investment opportunities received through social media, messaging apps, or online dating platforms. Experts advise verifying the registration status of investment firms, avoiding promises of guaranteed returns, and independently confirming the legitimacy of any cryptocurrency platform before transferring funds. Authorities also caution that demands for additional fees to unlock withdrawals are a common hallmark of investment fraud.
