Why did the US Securities and Exchange Commission sue NanoBit?

The US Securities and Exchange Commission (SEC) sued NanoBit Limited after alleging the company operated a fraudulent cryptocurrency trading platform that targeted at least 18 investors between 2023 and 2024. The regulator said investors were persuaded to deposit funds into a fake platform instead of legitimate investments.

What was the outcome of the SEC's case against NanoBit?

The US Securities and Exchange Commission (SEC) obtained a US$5.4 million judgment against NanoBit Limited and related defendants. The court also permanently barred the defendants from participating in the issuance, purchase or sale of securities and ordered financial penalties, disgorgement and prejudgment interest.

How did the NanoBit fraud scheme allegedly work?

According to the US Securities and Exchange Commission (SEC), NanoBit Limited allegedly contacted investors through Instagram before moving them into WhatsApp groups where fake financial professionals promoted a fraudulent trading platform. The SEC said investors were shown fabricated account balances and prevented from withdrawing their money.

What penalties were imposed on NanoBit?

NanoBit Limited was ordered to pay about US$1.8 million, including a US$1.18 million civil penalty, more than US$532,000 in disgorgement and nearly US$81,200 in prejudgment interest. Three affiliated entities were each ordered to pay an additional US$1.18 million civil penalty.

What did the SEC allege happened to investors' money?

The US Securities and Exchange Commission (SEC) alleged that NanoBit Limited did not execute any cryptocurrency transactions for investors. Instead, the regulator said more than US$2 million was transferred to bank accounts in Hong Kong and hundreds of thousands of dollars in crypto assets were misappropriated by participants in the scheme.

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SEC wins US$5.4M NanoBit fraud judgment

Written by Brie CarterPublished Jun 30, 2026, 5:15 AM

The US Securities and Exchange Commission secured a US$5.4 million judgment against NanoBit and related parties over an alleged cryptocurrency fraud scheme.
The court found the defendants violated US securities laws after investors were allegedly misled into depositing funds on a fake trading platform.
The case reflects the SEC's continued enforcement against crypto-related fraud despite a broader shift in its regulatory approach to digital assets.

The US Securities and Exchange Commission (SEC) has secured a US$5.4 million judgment against NanoBit Limited and related defendants after a federal court found they operated an alleged cryptocurrency fraud scheme that targeted at least 18 investors between 2023 and 2024.

The US District Court for the Eastern District of New York entered final judgment on 16 June, after the SEC alleged NanoBit operators impersonated financial professionals in WhatsApp groups and directed investors to deposit money into a fake cryptocurrency trading platform.

According to the SEC, “no transactions took place on the NanoBit platform and investors’ funds in fact went to scheme participants who wired more than US$2 million to bank accounts in Hong Kong and misappropriated hundreds of thousands of dollars’ worth of investors’ crypto assets.”

The court permanently barred the defendants from participating in the issuance, purchase or sale of securities, while NanoBit was ordered to pay about US$1.8 million, including a US$1.18 million civil penalty, disgorgement of more than US$532,000 and nearly US$81,200 in prejudgment interest, with affiliated entities each also receiving US$1.18 million penalties.

The SEC said the defendants falsely claimed their affiliate, NanobitUS Securities, was an SEC-registered broker and promoted fake initial coin offerings promising high returns, while as NanoBit is a privately held company there was no share price reaction.

The regulator alleged investors were first contacted through social media platforms including Instagram before being added to WhatsApp groups, where fake account dashboards displayed fabricated profits to encourage additional deposits.

The NanoBit judgment follows other recent SEC enforcement actions, including a US$12 million alleged artificial intelligence trading fraud case announced in May and April charges against crypto executive Donald Basile over an alleged US$16 million fundraising scheme linked to Bitcoin Latinum.