Key Takeaways
- Federal court issued final judgment against NanoBit Limited and associated entities on June 16, 2026.
- NanoBit operated a fraudulent cryptocurrency exchange that defrauded a minimum of 18 investors from 2023 through 2024, according to SEC allegations.
- Court ordered defendants to collectively pay over $5.4 million including civil penalties, disgorgement, and prejudgment interest.
- Perpetrators allegedly impersonated investment advisors in WhatsApp chat rooms to attract victims.
- The enforcement action represents ongoing SEC efforts against cryptocurrency fraud despite relaxed regulatory stance elsewhere.
The Securities and Exchange Commission has secured a conclusive legal victory against NanoBit Limited in a fraud prosecution. This ruling brings closure to litigation initiated almost two years prior.
On June 16, 2026, the US District Court for the Eastern District of New York formalized the judgment. The SEC made the announcement public the following Monday.
The regulatory agency filed charges against NanoBit in September 2024, alleging the operation maintained a deceptive cryptocurrency exchange specifically engineered to misappropriate investor capital.
The Fraudulent Operation Explained
The SEC’s complaint outlined how NanoBit’s operatives identified targets through social networking sites including Instagram. Subsequent communications were transferred to WhatsApp group chats.
Within these messaging groups, individuals connected to 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 operated without legitimate trading capabilities. Investors observed interface displays suggesting account growth, but no actual cryptocurrency transactions occurred.
NanoBit further claimed its related entity, NanobitUS Securities, maintained official SEC broker registration. This representation was entirely fabricated, according to regulators.
The operation additionally marketed fraudulent initial coin offerings, making exaggerated profit projections to investors participating in these sales.
When victims attempted withdrawing their investments, they received fabricated explanations or faced demands for substantial processing charges, the SEC alleges. Certain investors who challenged the platform’s legitimacy were expelled from WhatsApp communications altogether.
Regulators allege more than $2 million was transferred to Hong Kong banking institutions. Additionally, several hundred thousand dollars in digital currency assets were misappropriated, based on agency documentation.
Court-Ordered Financial Sanctions
The judgment requires NanoBit to remit a civil penalty of $1.18 million. Additional obligations include disgorgement exceeding $532,000 and prejudgment interest approaching $81,200.
NanoBit’s combined liability totals approximately $1.8 million.
Three affiliated entities faced charges: Radiant Horizons, Sweet Karma, and Zhao Deli. Each received identical $1.18 million penalty assessments.
Jiajie Liu, identified as a principal scheme organizer, received orders to pay roughly $120,000 encompassing penalties, disgorgement, and accrued interest.
Additionally, the court imposed permanent injunctions against all defendants, prohibiting future securities issuance, acquisition, or sale.
Across all defendants, the cumulative judgments exceed $5.4 million.
This prosecution aligns with a series of recent SEC enforcement initiatives targeting cryptocurrency fraud. In May, the agency filed charges against a Texas resident allegedly responsible for collecting over $12 million from approximately 150 investors through deceptive claims regarding AI-powered trading algorithms.
In April, the SEC charged cryptocurrency executive Donald Basile alongside two corporate entities. The allegations involved raising approximately $16 million from investors through misrepresentations concerning a digital asset called Bitcoin Latinum.
These enforcement activities persist despite the SEC adopting more accommodating regulatory positions toward cryptocurrency businesses generally under current leadership. The agency has additionally modified its interpretation of securities offerings in recent periods.
The NanoBit judgment represents among the most substantial financial penalties imposed in cryptocurrency fraud prosecutions this year.
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