Key Takeaways
- On June 16, 2026, a federal court in New York issued a final judgment against NanoBit Limited and related entities.
- According to the SEC, NanoBit operated a fraudulent cryptocurrency trading platform that siphoned money from 18 or more investors during 2023-2024.
- The combined penalties, disgorgement, and interest payments ordered by the court exceed $5.4 million.
- Scammers allegedly impersonated investment advisors in WhatsApp chat groups to attract unsuspecting victims.
- This enforcement action represents the SEC’s ongoing efforts to combat cryptocurrency fraud, despite relaxing certain crypto regulations elsewhere.
The Securities and Exchange Commission has secured a decisive victory in federal court against NanoBit Limited. The conclusion brings closure to litigation that started almost two years prior.
A New York federal judge in the Eastern District finalized the ruling on June 16, 2026. The regulatory agency made the announcement public this past Monday.
The SEC initially filed charges against NanoBit in September 2024. The complaint alleged the operation ran a fraudulent cryptocurrency exchange specifically created to defraud retail investors.
Inside the Fraudulent Operation
The SEC’s investigation revealed that NanoBit’s controllers recruited targets via social media channels including Instagram. Conversations were subsequently transferred to WhatsApp group chats.
Within these chat environments, participants in the scheme allegedly masqueraded as licensed investment advisors. They persuaded victims to transfer funds into NanoBit’s trading platform.
According to SEC findings, the platform was entirely fabricated. While investors observed dashboard displays indicating portfolio growth, no legitimate trading activities occurred.
NanoBit falsely represented that its affiliated entity, NanobitUS Securities, held proper SEC registration as a licensed broker. The commission confirmed this claim was completely untrue.
The fraudulent enterprise additionally marketed fictitious initial coin offerings, making unrealistic promises about investment returns to potential buyers.
When victims attempted to access their funds, the SEC states they received various excuses or demands for substantial withdrawal fees. Investors who raised concerns about the platform’s legitimacy were frequently ejected from the WhatsApp groups.
The SEC’s evidence indicates over $2 million was transferred to Hong Kong banking institutions. Additionally, cryptocurrency holdings worth hundreds of thousands of dollars were reportedly stolen by the operators.
Financial Consequences Ordered by Court
The court mandated NanoBit to remit a civil penalty totaling $1.18 million. Additional requirements include disgorgement exceeding $532,000 and prejudgment interest approaching $81,200.
NanoBit’s combined liability reaches approximately $1.8 million.
Three associated entities faced charges in the lawsuit: Radiant Horizons, Sweet Karma, and Zhao Deli. Each received orders to pay $1.18 million in civil penalties.
Jiajie Liu, identified as a principal architect of the fraudulent scheme, faces obligations totaling roughly $120,000 encompassing penalties, disgorgement, and accrued interest.
The judgment includes permanent restraining orders against all named parties. These prohibitions prevent them from engaging in any securities issuance, purchase, or sale activities in the future.
Collectively, the financial judgments against all defendants surpass $5.4 million.
This enforcement action aligns with the SEC’s recent pattern of aggressive prosecution against cryptocurrency-related fraud. Last May, the commission filed charges against a Texas individual accused of collecting over $12 million from approximately 150 investors through deceptive representations about AI-powered trading algorithms.
This past April, the SEC brought charges against cryptocurrency business executive Donald Basile along with two corporate entities he controlled. The allegations involved raising approximately $16 million from investors using fraudulent statements related to a digital asset called Bitcoin Latinum.
These enforcement initiatives persist despite the SEC adopting a more permissive regulatory stance toward cryptocurrency businesses generally under current leadership. The commission has simultaneously modified its interpretation of what constitutes a securities offering in recent policy updates.
The NanoBit judgment represents one of the most substantial financial penalties imposed in a cryptocurrency fraud matter this calendar year.
