The U.S. Securities and Exchange Commission has obtained a $5.5 million default judgment against the operators of NanoBit, a platform regulators allege functioned as a fraudulent crypto investment scheme. According to the SEC, the group cultivated trust with victims through WhatsApp messaging before steering their money into Hong Kong bank accounts rather than conducting any genuine cryptocurrency trades. The default judgment indicates the defendants did not appear or respond to the legal proceedings, allowing the court to rule in the agency's favor. The case reflects ongoing enforcement efforts targeting so-called 'pig butchering' scams, in which fraudsters build relationships with targets before convincing them to deposit funds into sham trading platforms. The judgment underscores the SEC's continued focus on crypto-related fraud carried out through social messaging apps and unregistered investment operations.
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