Quick Summary
- On June 16, 2026, a federal court in New York issued a final ruling against NanoBit Limited and associated entities.
- According to SEC allegations, NanoBit operated a fraudulent cryptocurrency trading platform that defrauded no fewer than 18 investors from 2023 through 2024.
- The combined financial penalties, including disgorgement and interest charges, exceed $5.4 million across all defendants.
- Fraudsters allegedly impersonated investment advisors in WhatsApp messaging groups to deceive potential victims.
- This enforcement action represents part of the SEC’s ongoing campaign against cryptocurrency fraud despite relaxed regulations elsewhere.
The Securities and Exchange Commission has secured a decisive legal victory against NanoBit Limited in a cryptocurrency fraud prosecution. The ruling brings closure to litigation that commenced almost two years prior.
On June 16, 2026, the US District Court for the Eastern District of New York officially entered the final judgment. The SEC made the announcement to the public the following Monday.
The regulatory agency initially filed suit against NanoBit in September 2024, charging the entity with operating a fraudulent cryptocurrency trading service intended to misappropriate investor capital.
The Fraud’s Operational Structure
Based on SEC findings, NanoBit’s organizers identified targets using social networking sites such as Instagram. Following initial contact, they transitioned communications to WhatsApp group chats.
Within these messaging groups, participants in the fraud allegedly misrepresented themselves as licensed investment advisors. Through these false credentials, they persuaded investors to transfer funds into NanoBit’s trading system.
The trading platform was entirely fabricated, according to the SEC. While investors observed dashboards displaying portfolio growth, no legitimate trading activity occurred.
NanoBit additionally falsely represented that its related entity, NanobitUS Securities, held official SEC registration as a licensed broker. The commission confirmed this claim was completely untrue.
The operation further promoted fraudulent initial coin offerings, guaranteeing substantial returns to participants who invested.
When investors attempted to retrieve their capital, the SEC reports they received various excuses or were demanded to remit substantial withdrawal fees. Certain investors who challenged the platform’s legitimacy were expelled from the WhatsApp groups altogether.
According to SEC allegations, over $2 million was transferred to banking institutions in Hong Kong. Additionally, cryptocurrency assets valued at hundreds of thousands of dollars were illegally misappropriated, the agency states.
Financial Consequences
The judicial ruling mandates NanoBit to remit a civil penalty of $1.18 million. Additional requirements include disgorgement exceeding $532,000 and prejudgment interest approaching $81,200.
NanoBit’s cumulative financial obligation reaches approximately $1.8 million.
Three affiliated entities faced charges in the litigation: Radiant Horizons, Sweet Karma, and Zhao Deli. Each received orders to pay civil penalties of $1.18 million.
Jiajie Liu, identified as a principal orchestrator of the scheme, received orders to pay roughly $120,000 covering penalties, disgorgement, and accumulated interest.
Permanent injunctive relief was granted against every defendant. These court orders prohibit them from issuing, purchasing, or trading securities in perpetuity.
Collectively, the monetary judgments against all parties total more than $5.4 million.
This prosecution aligns with a series of recent SEC enforcement initiatives targeting cryptocurrency fraud. Last May, the commission brought charges against a Texas resident accused of obtaining over $12 million from approximately 150 investors through deceptive claims regarding AI-powered trading algorithms.
In April, the SEC filed charges against cryptocurrency executive Donald Basile along with two corporate entities. The allegations centered on raising approximately $16 million from investors through fraudulent representations connected to a digital asset called Bitcoin Latinum.
These enforcement efforts persist despite the SEC adopting a more permissive regulatory stance toward cryptocurrency businesses under current leadership. The commission has also modified its interpretation of what constitutes a securities offering in recent months.
The NanoBit judgment represents one of the most substantial financial penalties imposed in a cryptocurrency fraud prosecution this year.
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