A New York federal judge entered a $5.5 million default judgment against NanoBit Limited and five related defendants over an alleged relationship investment scam built on a fake crypto trading platform.
The US District Court for the Eastern District of New York ordered $5,518,902 in combined disgorgement, prejudgment interest and civil penalties on June 16, the US Securities and Exchange Commission (SEC) announced.
The agency alleged that from September 2023 to June 2024, scheme participants posed as financial industry professionals in WhatsApp groups, built trust with investors and then asked them to deposit funds into NanoBit.
Although users’ dashboards showed what appeared to be profitable trades, the SEC alleged that the platform never executed any crypto transactions. At least 18 investors lost nearly $1 million in crypto and fiat currency, according to the SEC’s complaint.
Investor funds were not used to trade, but rather went to bank accounts in Hong Kong, the SEC said. The participants have transferred more than $2 million offshore and misappropriated hundreds of thousands of dollars in investors’ crypto assets.
NanoBit also falsely claimed that an affiliate, NanobitUS Securities, was SEC-registered and linked to reputable financial firms.
