The U.S. District Court for the Eastern District of New York has issued a default judgment in the case against the fraudulent crypto platform NanoBit, according to a report by the U.S. Securities and Exchange Commission (SEC).
NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., and associated entrepreneurs Jiajie Liu and Hua Zhao have been found guilty of investment fraud.
The primary defendant, NanoBit Limited, has been ordered to pay approximately $1.8 million. Radiant Horizons Limited, Sweet Karma Fashion Inc., and Zhao Tropical Deli Inc. have each been fined approximately $1.2 million. The total penalties exceed $5.5 million.
The defendants are also prohibited from participating in the issuance, purchase, offer, or sale of securities, except for transactions on their personal accounts for Liu and Zhao.
The default judgment was issued due to the defendants’ absence and lack of opposition.
According to the SEC’s complaint filed on September 17, 2024, the scheme operated from at least September 2023 to June 2024. The regulator alleged that the defendants met potential victims in WhatsApp groups, posed as financial industry professionals, and invited them to the NanoBit crypto platform.
The SEC claimed that the platform simulated trading and profit growth, but “disappeared” when victims attempted to withdraw funds. NanoBit also falsely claimed broker registration through an affiliated company, NanobitUS Securities, and promoted fake ICOs promising high returns.
Eighteen investors fell victim to the fraud, losing at least $967,835. Approximately $725,335 was transferred in crypto assets to three non-custodial addresses, and another $242,500 in fiat. These funds were allegedly moved from the U.S. to accounts in Hong Kong.
Previously, Thai authorities issued an arrest warrant for Chinese entrepreneur Wang Yicheng, suspected of illegal mining and laundering money obtained from fraud and gambling.
