The U.S. District Court for the Eastern District of New York has issued a default judgment in the case against the fraudulent cryptocurrency platform NanoBit. This was reported by the Securities and Exchange Commission (SEC).
NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., and associated entrepreneurs Jia Jie Liu and Hua Zhao have been found guilty of investment fraud.
The main entity, 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 about $1.2 million. The total amount of penalties exceeds $5.5 million.
The defendants are also prohibited from participating in the issuance, purchase, offer, or sale of securities and from soliciting such transactions. Liu and Zhao are only exempted for transactions on their personal accounts.
The default judgment was issued due to the defendants' failure to appear and lack of objections.
According to the SEC's complaint dated September 17, 2024, the scheme operated at least from September 2023 to June 2024. The regulator alleged that the defendants engaged with potential victims in WhatsApp groups, posing as financial industry professionals and inviting them to the NanoBit platform.
The SEC claimed that the platform faked trading and profit growth, and that funds "disappeared" when victims attempted to withdraw them. The SEC also stated that NanoBit falsely referenced the brokerage registration of an affiliated company, NanobitUS Securities, and promoted fake ICOs with promises of high returns.
Eighteen investors fell victim to the fraud, losing at least $967,835. Approximately $725,335 was received in cryptocurrency across three non-custodial addresses, while another $242,500 was in fiat currency. According to the regulator, these funds were transferred from the U.S. to accounts in Hong Kong.
Previously, Thai authorities issued an arrest warrant for Chinese entrepreneur Wang Yichen, suspected of illegal mining and laundering money obtained from fraud and gambling.