The SEC alleged that investors were recruited via social media such as Instagram and funneled into WhatsApp groups, where they were shown a fake NanobitUS dashboard claiming rising returns and were misled into believing NanobitUS Securities was SEC-registered, while ICOs promising high returns were promoted; no real trades occurred on the platform and funds went to scheme participants, with many investors unable to withdraw.

Final judgments were secured against six defendants in a multimillion-dollar NanoBit crypto investment scam centered on a fake trading platform, resulting in more than $2 million in investor losses.

Investors’ funds were diverted to bank accounts in Hong Kong, hundreds of thousands of dollars in crypto assets were misappropriated, and some victims were removed from WhatsApp groups or hit with large withdrawal fees when seeking refunds.

Under the final judgment, the defendants were ordered to pay over $5 million in fines to resolve the SEC action.

A final judgment was entered by the US District Court for the Eastern District of New York on June 16, leading to permanent injunctions against NanoBit and related entities from issuing, purchasing, or selling securities.

The Eastern District of New York also issued default judgments on June 16, imposing permanent bans on securities-law violations and penalties totaling over $5 million—disgorgement, interest, and civil penalties—against NanoBit Limited, Radiant Horizons, Sweet Karma, Zhao Deli, and two individuals.

The article notes related global incidents, such as a May 2026 case in New Zealand involving a fraudster posing as a U.S. Army general to deceive a victim, illustrating the broad and evolving nature of these scams.

The case sits within the SEC’s ongoing crackdown on crypto-related fraud, set against broader shifts in crypto regulation and evolving interpretations of what constitutes securities offerings.

NanoBit was ordered to pay about $5.4 million in total penalties, including $1.18 million in fines, over $532,000 in disgorgement, and nearly $81,200 in prejudgment interest; affiliates Radiant Horizons, Sweet Karma, and Zhao Deli were each fined $1.18 million, and orchestrator Jiajie Liu faced roughly $120,000 in penalties and disgorgement.

Court orders also included NanoBit Limited paying over $1.79 million and each of the other entities owing more than $1.18 million in civil penalties, with two individuals required to return illicit gains plus interest and penalties.

The enforcement focus highlights crypto romance or ‘pig butchering’ scams, where fraudsters cultivate personal relationships over weeks or months before steering victims to fake crypto platforms and blocking withdrawals.