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The scheme operators built trust with investors عبر WhatsApp before redirecting funds to Hong Kong bank accounts instead of carrying out any real crypto trades.
A federal judge in New York has issued a $5.5 million default judgment against NanoBit Limited and five affiliated 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, according to the U.S. Securities and Exchange Commission (SEC).
The SEC said that between September 2023 and June 2024, the defendants posed as financial professionals in WhatsApp groups, gained investors’ confidence, and encouraged deposits into the NanoBit platform.
Although the platform displayed fake profits, no actual crypto trading occurred, the regulator alleged. At least 18 investors lost close to $1 million in combined crypto and fiat assets.
Rather than being used for trading, funds were transferred to Hong Kong accounts, with more than $2 million sent offshore and significant amounts of crypto misappropriated.
NanoBit also falsely claimed that its affiliate, NanobitUS Securities, was SEC-registered 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—failed to appear in court. The judge ruled the default was willful and found no valid defense.
NanoBit Limited faces the largest 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 were ordered to 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. Liu and Zhao may still trade in their 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 actions against relationship-based crypto scams. A seventh defendant, Fei Liao, was named in the original complaint but was not included in the default judgment.
