SEC wins $5.5M default judgment against fake crypto platform NanoBit

A federal judge in New York has ordered NanoBit Limited and five co-defendants to pay a combined $5,518,902 over what the U.S. Securities and Exchange Commission calls a "relationship-investment" scam — the scheme type popularly known as "pig butchering" — built around a crypto trading platform that never actually traded.

The default judgment was entered June 16 in the U.S. District Court for the Eastern District of New York and announced by the SEC, according to CoinDesk's reporting on the agency's statement and complaint. Because none of the defendants ever appeared in court, the judge found the default willful and identified no meritorious defense.

Per the SEC's complaint, from September 2023 to June 2024 scheme participants posed as finance professionals in WhatsApp groups, built rapport with targets, then steered them to deposit funds into NanoBit. The platform showed dashboards displaying apparently profitable trades, but the SEC alleges no crypto transactions were ever executed. Instead, investor money — more than $2 million wired offshore, plus misappropriated crypto — went to bank accounts in Hong Kong. At least 18 investors lost close to $1 million in crypto and fiat. The SEC also alleges NanoBit falsely claimed an affiliate, NanobitUS Securities, was SEC-registered and linked to reputable financial firms.

The money is split unevenly. NanoBit Limited carries the largest share: over $532,000 in disgorgement, nearly $82,000 in prejudgment interest, and a $1.1 million civil penalty. Three other entity defendants — Radiant Horizons Limited, Sweet Karma Fashion Inc., and Zhao Tropical Deli Inc. — each owe $1.1 million in penalties. Individuals Jiajie Liu and Hua Zhao owe $120,000 and $55,000 respectively. All payments are due within 30 days. Every defendant is permanently barred from anti-fraud violations and from participating in securities offerings, though Liu and Zhao may still trade their personal accounts.

Key facts

• Judgment: $5,518,902 total (disgorgement + prejudgment interest + civil penalties), entered June 16, 2026, EDNY — SEC via CoinDesk.
• Alleged conduct: Sept 2023–June 2024; fake dashboards, no real trades; funds routed to Hong Kong bank accounts — SEC complaint.
• Harm: at least 18 investors, nearly $1 million lost; over $2 million wired offshore — SEC complaint.
• Six defendants, none appeared; original complaint filed Sept 2024 alongside a parallel action against another fake platform, CoinW6 — SEC via CoinDesk.

The real-world read

A default judgment is a paper win, not recovered money: the defendants ignored the case entirely, and with the cash already routed to Hong Kong accounts, the odds that the 18 victims see their ~$1 million back are slim. The SEC frames this and the parallel CoinW6 case as among its first enforcement actions against relationship-investment scams involving fake platforms — a positioning worth noting as agency messaging. One loose end the source leaves open: a seventh defendant named in the original 2024 complaint, Fei Liao, was not part of this judgment, and the reporting doesn't say why. This item rests on a single secondary source (CoinDesk) relaying the SEC's own filing and press statement; the underlying complaint reflects the SEC's allegations, which the absent defendants never contested.

This is news reporting, not financial advice.