SEC Secures $5.5M Judgment Against NanoBit Crypto Fraud Scheme

The U.S. District Court for the Eastern District of New York ruled against NanoBit, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, and Hua Zhao. The court-ordered total of $5.52 million covers penalties, disgorgement, and interest for a scheme that relied on social media manipulation and fabricated credentials.

According to the SEC, the defendants posed as seasoned financial professionals to lure victims into WhatsApp groups. Once inside these groups, they promoted fraudulent initial coin offerings and directed investors to a platform that simulated trading activity. In reality, no actual transactions occurred. Instead, investor capital was funneled to bank accounts in Hong Kong or converted into personal crypto assets. The SEC investigation revealed that the perpetrators falsely claimed their affiliate, NanobitUS Securities, was a registered entity to build false credibility with their targets.