Here’s a sharper, more concise rewrite with a clean news tone:
The group gained investors’ trust through WhatsApp before funneling funds to Hong Kong bank accounts instead of executing legitimate crypto trades.
A New York federal judge has entered a $5.5 million default judgment against NanoBit Limited and five related defendants over an alleged relationship-based crypto investment scam.
On June 16, the U.S. District Court for the Eastern District of New York ordered $5,518,902 in disgorgement, prejudgment interest, and civil penalties, the U.S. Securities and Exchange Commission (SEC) said.
According to the SEC, from September 2023 to June 2024, the defendants posed as finance professionals in WhatsApp groups, built rapport with investors, and directed them to deposit funds into the NanoBit platform.
While user dashboards showed seemingly profitable activity, no actual crypto trades were carried out, the regulator alleged. At least 18 investors lost nearly $1 million across crypto and fiat holdings.
Instead of trading, funds were routed to Hong Kong bank accounts, with more than $2 million sent offshore and hundreds of thousands in crypto assets misused.
NanoBit also falsely claimed that an affiliate, NanobitUS Securities, was registered with the SEC and connected to reputable financial firms.
The defendants—NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, and Hua Zhao—did not appear in court. The judge ruled the default was willful and found no credible defense.
NanoBit Limited faces the largest penalty, including over $532,000 in disgorgement, nearly $82,000 in interest, and a $1.1 million fine. The three other corporate entities were each hit with $1.1 million penalties, while Liu and Zhao were ordered to pay $120,000 and $55,000, respectively. All payments are due within 30 days.
The court also permanently barred all six defendants from violating federal anti-fraud laws and from participating in securities offerings, though Liu and Zhao may continue trading in personal accounts.
The SEC filed the case in September 2024 alongside a parallel action involving another alleged fake platform, CoinW6, marking some of its first enforcement efforts targeting relationship-investment crypto scams. A seventh defendant, Fei Liao, was named in the original complaint but not included in the default judgment.
