SEC Secures $5.4M Judgment Against NanoBit Fraudulent Crypto Scheme

Key Takeaways

• NanoBit Limited and its related entities received a final federal court judgment on June 16, 2026, in the Eastern District of New York.
• The fraudulent operation allegedly deceived a minimum of 18 investors using a counterfeit cryptocurrency trading platform during 2023-2024.
• Total financial penalties exceed $5.4 million, including civil fines, asset disgorgement, and accrued interest payments.
• Scammers impersonated licensed financial advisors within WhatsApp chat groups to attract unsuspecting victims.
• This enforcement action demonstrates the SEC’s continued focus on prosecuting crypto scams despite relaxed regulatory stance elsewhere.

The Securities and Exchange Commission has secured a conclusive legal victory against NanoBit Limited in a significant fraud prosecution. This decision brings closure to litigation that has spanned almost two years.

On June 16, 2026, the federal court in New York’s Eastern District issued its final ruling. The SEC made a formal public announcement of this legal triumph on Monday.

Initial proceedings against NanoBit commenced in September 2024. Regulators alleged the organization operated a fraudulent cryptocurrency exchange specifically engineered to siphon funds from retail investors.

Anatomy of the Fraud Operation

The SEC’s investigation revealed that NanoBit’s orchestrators identified potential marks through social networking sites such as Instagram. Following initial contact, they transitioned these communications to WhatsApp group chats.

Within these private groups, fraudsters allegedly masqueraded as credentialed investment advisors. They persuaded victims to transfer capital into NanoBit’s supposedly legitimate platform.

Regulators determined the entire platform was an elaborate fabrication. While victims observed dashboards displaying account growth and trading activity, no actual cryptocurrency transactions occurred.

NanoBit falsely represented that its associated entity, NanobitUS Securities, held proper SEC broker registration. Regulatory records show no such registration existed.

The operation additionally promoted fabricated initial coin offerings, enticing investors with promises of exceptional returns on their investments.

Attempts by investors to extract their deposited funds were met with various obstacles, according to the SEC. Victims faced demands for substantial withdrawal fees or received vague explanations for delays. Those who challenged the platform’s legitimacy found themselves expelled from the WhatsApp communities.

Evidence presented shows over $2 million transferred to Hong Kong banking institutions. Additional cryptocurrency assets valued at hundreds of thousands of dollars were unlawfully diverted, regulators stated.

Financial Consequences

Judicial orders require NanoBit to remit a civil penalty of $1.18 million. Additionally, the company must surrender ill-gotten gains exceeding $532,000 plus prejudgment interest approaching $81,200.

NanoBit’s combined obligation totals approximately $1.8 million.

Three affiliated organizations faced charges: Radiant Horizons, Sweet Karma, and Zhao Deli. Each entity received identical $1.18 million penalty assessments.

Jiajie Liu, identified as a principal architect of the fraudulent scheme, faces financial obligations totaling roughly $120,000 encompassing penalties, disgorgement, and interest charges.

Permanent restraining orders were imposed on all defendants. These legal restrictions prohibit them from engaging in any securities issuance, purchase, or sale activities in perpetuity.

Collectively, the monetary judgments against all parties exceed $5.4 million.

This prosecution aligns with the SEC’s recent enforcement campaign targeting cryptocurrency fraud. Last May, regulators filed charges against a Texas resident accused of extracting over $12 million from approximately 150 investors through deceptive claims regarding AI-powered trading algorithms.

In April, the SEC indicted cryptocurrency executive Donald Basile alongside two corporate entities. Allegations centered on approximately $16 million raised from investors via misrepresentations connected to a digital asset called Bitcoin Latinum.

These prosecutions persist despite the SEC adopting more accommodating regulatory postures toward legitimate crypto enterprises under present leadership. The commission has simultaneously modified its framework for determining what constitutes a securities offering in recent months.

The NanoBit judgment represents one of the most substantial financial penalties imposed in cryptocurrency fraud litigation this year.

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