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SEC Wins $5.4M Judgment Against NanoBit in Crypto Fraud Case
SEC secures $5.4M judgment against NanoBit for crypto fraud scheme that lured investors via WhatsApp and fake trading dashboard. Court imposes permanent injunctions.
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The U.S. Securities and Exchange Commission secured a $5.4 million judgment against the operators of NanoBit, a cryptocurrency investment scheme that defrauded investors through fake trading dashboards and social media pitches. The U.S. District Court for New York entered the order on June 16, the SEC said.
The SEC alleged that NanoBit operators posed as financial experts in WhatsApp groups and lured victims to send cryptocurrency and cash. Instead of investing the funds, the defendants transferred the money directly to individuals involved in the scam, according to the complaint. The platform displayed false balances and returns, creating the impression that investors were making profits. No actual cryptocurrency trading occurred, the SEC said.
NanoBit also falsely advertised itself as an affiliate of NanobitUS Securities and claimed to be an SEC-registered broker, the agency alleged. The operators offered fake initial coin offerings to attract more victims.