SEC Seeks $5.4M Judgment in NanoBit Crypto Fraud Case

The US Securities and Exchange Commission (SEC) has secured a $5.4 million judgment in its fraud case against NanoBit Limited, a cryptocurrency platform accused of stealing hundreds of thousands of dollars from at least 18 investors between 2023 and 2024.

The SEC alleged that NanoBit's operators impersonated financial professionals in WhatsApp groups to trick investors into depositing funds on the fake platform. Instead, the funds were allegedly diverted to scheme participants, with over $2 million wired to bank accounts in Hong Kong and hundreds of thousands of dollars' worth of crypto assets misappropriated.

The New York court found that the defendants violated US securities laws and issued permanent injunctions against them, prohibiting them from engaging in the issuance, purchase or sale of securities. NanoBit was ordered to pay a $1.18 million fine, disgorgement of over $532,000 for ill-gotten gains and prejudgment interest of nearly $81,200, totaling almost $1.8 million.