- U.S. federal court orders more than $5.5 million in monetary remedies against NanoBit defendants.
- Final judgment concludes one of the SEC’s first enforcement actions targeting relationship investment scams involving crypto.
- Court grants permanent injunctions alongside disgorgement, prejudgment interest and civil penalties.
- The case stems from an alleged fraud that operated between October 2023 and June 2024 through a fake crypto trading platform.
SEC Obtains Final Judgment in NanoBit Crypto Fraud Case
A U.S. federal court has entered a final judgment in the U.S. Securities and Exchange Commission’s (SEC) enforcement action against NanoBit and several related defendants, ordering more than $5.5 million in combined disgorgement, prejudgment interest and civil penalties.
The ruling marks the conclusion of one of the SEC’s first enforcement actions focused on so-called “relationship investment scams” involving cryptocurrency. The final judgment also permanently enjoins the defendants from violating federal securities laws, closing a case that the regulator first filed in September 2024.
According to the court’s order, NanoBit Limited was directed to pay approximately $1.8 million, consisting of disgorgement, prejudgment interest and a civil penalty. Additional monetary judgments were entered against related corporate defendants Radiant Horizons Limited, Sweet Karma Fashion Inc. and Zhao Tropical Deli Inc., as well as individual defendants Jiajie Liu, Fei Liao and Hua Zhao, bringing the total financial remedies to more than $5.5 million. The court also imposed permanent injunctions against the defendants.
Case Originated From Alleged Fake Crypto Trading Platform
The SEC originally filed its complaint in the U.S. District Court for the Eastern District of New York in September 2024, alleging that the scheme operated from approximately October 2023 through at least June 2024.
According to the regulator, participants used WhatsApp groups while impersonating financial professionals to build trust with prospective investors before directing them to the NanoBit crypto trading platform. The SEC alleged that NanoBit falsely claimed its affiliate, NanobitUS Securities, was an SEC-registered broker in an effort to establish credibility.
The complaint further alleged that victims were encouraged to participate in purported initial coin offerings promising significant returns. Instead, investor funds were allegedly diverted to bank accounts in Hong Kong, with more than $2 million transferred through the scheme while additional crypto assets belonging to investors were misappropriated.
Final Order Concludes One of SEC’s First Relationship Scam Cases
When announcing the enforcement action in September 2024, the SEC described the NanoBit and CoinW6 matters as its first cases specifically targeting relationship investment scams involving fake crypto trading platforms. The agency alleged that fraudsters increasingly relied on social media platforms and messaging applications to establish trust before persuading victims to invest in fraudulent crypto products.
The final judgment represents the latest procedural milestone in the NanoBit litigation, converting the SEC’s allegations into enforceable court-ordered remedies after nearly two years of legal proceedings. The judgment includes permanent injunctions and financial penalties intended to hold the defendants accountable under federal securities laws.
The SEC has continued to warn investors to verify the registration status of firms and individuals offering investment opportunities and to exercise caution when approached through social media or messaging platforms with unsolicited cryptocurrency investment proposals.
In Washington, D.C., U.S. lawmakers introduced the Stop Crypto ATM Scams Act in the U.S. Senate in response to a sharp rise in cryptocurrency ATM fraud. Recently, in Baltimore, Maryland, Rodney “Bitcoin Rodney” Burton pleaded guilty in federal court in connection with the $1.8 billion HyperFund crypto fraud scheme.
The SEC has also cautioned investors about scams conducted through group chats. In a December 2025 investor alert, Investor.gov advised investors not to base investment decisions solely on information shared in group chats and encouraged them to verify the background of anyone offering or promoting investment opportunities.
