The US Securities and Exchange Commission (SEC) eventually won its case against NanoBit. For context, the SEC alleged that the defendants carried out a ‘pig slaughter’ scheme between September 2023 and June 2024. Scammers reportedly communicate using messaging apps such as WhatsApp to gain victims’ trust and persuade them to invest in NanoBit.
In fact, NanoBit advertised fake cryptocurrency initial coin offerings promising unusually high returns in order to appear legitimate. The company also falsely claimed that its subsidiary, NanobitUS Securities, was an SEC-registered brokerage.
On what grounds did the SEC win against NanoBit?
SEC on June 29 announced his victory. The announcement is almost here It comes two weeks after the U.S. District Court for the Eastern District of New York issued its final verdict against two individuals and four entities linked to the NanoBit fraud case.
Addressing the same issue, United States District Judge Sanket J. Bulsara said: requested,
As alleged, no transactions took place on the NanoBit platform, and investors’ funds actually went to scheme participants who wired more than $2 million to bank accounts in Hong Kong and misappropriated investors’ crypto assets worth hundreds of thousands of dollars.
In addition to NanoBit, the SEC also filed lawsuits against Radiant Horizons Limited, Sweet Karma Fashion Inc. and also won against Zhao Tropical Deli Inc. Additionally, two individuals, including Jiajie Liu and Hua Zhao, were also implicated for their failure to respond to the regulator’s case.
Considering the facts, the court’s final decision included a permanent ban on all defendants who violated key anti-fraud provisions in the U.S. securities laws.
Fine for NanoBit and others
As a result, the defendants were ordered to pay financial penalties totaling approximately $5.52 million. This included pre-judgment interest to compensate them for the time they held the illegal profits, fines intended to punish and deter future misconduct, and compensation requiring them to surrender profits made through illegal conduct.
It goes without saying that the largest penalty was imposed on NanoBit, which owed approximately $1.8 million. On the other hand, Radiant Horizons, Sweet Karma, and Zhao Deli were required to pay more than $1.18 million.
Concluding the decision, Judge Bulsara added:
Defendants’ default is intentional; No substantial defense was presented to the Court for default; and since there is no alternative to obtaining the relief sought, the SEC will suffer undue prejudice in the event of default.
Final Summary
- NanoBit used fake cryptocurrency seed offers as a tactic to gain the trust of victims.
- The defendants were ordered to pay financial penalties totaling approximately $5.52 million.
