Key Highlights
- The SEC secured final judgments against four entities and two individuals behind the alleged NanoBit crypto investment scam.
- The scheme allegedly stole more than $2 million from investors through a fake crypto trading platform.
- Fraudsters reportedly used WhatsApp groups and social media to lure victims with fake crypto investment opportunities.
The U.S. Securities and Exchange Commission (SEC) has secured a final judgment against six defendants accused of operating a multimillion-dollar cryptocurrency investment scam centered around the fake trading platform NanoBit.
According to an official release, the U.S. District Court for the Eastern District of New York entered default judgments on June 16 against four corporate entities and two individuals involved in what the regulator described as a relationship-based crypto investment fraud scheme.
The SEC alleged that the scheme stole more than $2 million from investors by convincing them to deposit funds into a fraudulent crypto trading platform that never executed any real transactions.
How the scam lured investors
According to the SEC’s complaint, the scam operated between at least September 2023 and June 2024. Fraudsters allegedly contacted victims through social media and messaging applications before inviting them into WhatsApp investment groups, where they posed as financial professionals to establish credibility.
After gaining investors’ trust, the group encouraged participants to transfer money to NanoBit, claiming it was a legitimate cryptocurrency trading platform capable of generating substantial returns. The SEC said the defendants also promoted fake initial coin offerings (ICOs) as exclusive investment opportunities that promised significant profits.
Fake SEC registration added to the deception
To make the platform appear legitimate, NanoBit allegedly claimed that its affiliate, NanobitUS Securities, was registered with the SEC as a broker-dealer. According to the regulator, that claim was false.
Rather than facilitating cryptocurrency trades, the SEC alleged that investor funds were diverted to scheme participants, who transferred more than $2 million to bank accounts in Hong Kong while also misappropriating hundreds of thousands of dollars’ worth of crypto assets.
“No transactions took place on the NanoBit platform,” the SEC stated.
Court ordered millions in penalties
The court permanently barred all defendants from violating federal securities laws, including provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. In addition, the judgment imposed financial penalties. NanoBit Limited was ordered to pay more than $1.79 million, including disgorgement, prejudgment interest, and civil penalties.
Radiant Horizons, Sweet Karma, and Zhao Deli were each ordered to pay civil penalties exceeding $1.18 million, while the two individual defendants were ordered to return alleged illicit gains, pay interest, and civil penalties. Collectively, the monetary judgments exceed $5 million.
SEC warns investors about scams
Alongside the enforcement action, the SEC’s Office of Investor Education and Advocacy renewed its warning about relationship investment scams that increasingly target crypto investors through social media and messaging platforms. The agency cautioned investors against relying solely on information shared in WhatsApp groups or online investment communities when making financial decisions.
The SEC also encouraged the public to verify the registration status of anyone offering investment opportunities by using the agency’s official Investor.gov database before sending funds.
Crypto romance scams keep growing
The NanoBit case is the latest example of the regulator intensifying enforcement against so-called “relationship investment scams,” often referred to as crypto romance or “pig butchering” scams.
These operations typically involve fraudsters building personal relationships with victims over weeks or months before persuading them to invest through fake cryptocurrency platforms that display fabricated profits but ultimately prevent withdrawals.
The case mirrors several recent crypto romance scams reported globally. In May 2026, a woman in New Zealand lost nearly $800,000 after fraudsters posing as a retired U.S. Army general persuaded her to send cryptocurrency through what authorities described as a long-running romance scam. Investigators said she was manipulated over several months before transferring funds to crypto wallets controlled by the scammers.
As crypto adoption continues to grow globally, regulators have repeatedly warned that scammers are increasingly using social media, encrypted messaging apps, and fake investment platforms to target retail investors.
Also read: How Chen Zhi’s Prince Group Allegedly Targeted Americans in a $15 Billion Crypto Scam Network
