SEC Wins $5.5M Default Judgment Over Fake Crypto Platform NanoBit

NanoBit also falsely claimed an affiliate, NanobitUS Securities, was SEC-registered and tied to reputable financial firms.

The defendants – NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, and Hua Zhao – never appeared in court. The judge found the default willful and no meritorious defense presented.

NanoBit Limited faces the largest share: over $532,000 in disgorgement, nearly $82,000 in prejudgment interest, and a $1.1 million civil penalty. The three other entity defendants each owe $1.1 million in penalties. Liu owes $120,000; Zhao owes $55,000. All must pay within 30 days.

The court permanently barred all six defendants from violating federal anti-fraud provisions and from participating in securities offerings or transactions. Liu and Zhao may still trade in their personal accounts.

The SEC filed the original complaint in September 2024 alongside a parallel action targeting another fake platform, CoinW6, framing both as among its first enforcement actions against relationship-investment scams involving fake crypto platforms. A seventh defendant named in that complaint, Fei Liao, was not included in the default judgment.

For traders, the case reinforces a pattern the SEC has flagged repeatedly: fake platforms that show paper profits while siphoning deposits offshore. The agency's willingness to pursue default judgments – even when defendants don't appear – signals that the legal cost of running these schemes is rising, even if recovery of stolen funds remains uncertain.