Court Orders NanoBit to Pay $5.5 Million in Disgorgement and Penalties
The U.S. Securities and Exchange Commission (SEC) announced on June 16, 2026, that the U.S. District Court for the Eastern District of New York has entered a final judgment against NanoBit Limited and five related defendants. The defendants are jointly and severally liable to pay $5,518,902, consisting of disgorgement of ill-gotten gains, prejudgment interest, and civil money penalties. The funds will be used to partially compensate defrauded investors and the remainder will be paid to the U.S. Treasury.
The Fraud: Posing as Financial Professionals on WhatsApp
According to the SEC's complaint, from September 2023 to June 2024, participants in the scheme used WhatsApp groups to impersonate financial industry professionals. They first established trust with prospective investors, then directed them to deposit funds into accounts held by NanoBit. The SEC alleged that investor funds were never used for trading; instead, they were transferred to bank accounts in Hong Kong. The defendants also sent over $2 million overseas and misappropriated hundreds of thousands of dollars of investors' crypto assets. At least five individuals were involved, and their identities remain under investigation.
Key Takeaway: Social Engineering Remains a Primary Vector for Crypto Fraud
This case once again underscores the prevalence of social engineering tactics in cryptocurrency fraud. Bad actors exploit instant messaging platforms such as WhatsApp and Telegram to project false authority, bypassing regulated exchanges and custodians to directly lure victims into depositing funds into controlled accounts. The SEC emphasized that investors should be wary of investment advice from unofficial channels and always verify whether the recipient holds appropriate licenses. The judgment against NanoBit serves as both a deterrent and a stark reminder of the need for stronger industry-wide risk controls.