business
SEC wins $5.5 million default judgment over alleged fake crypto platform NanoBit
Key takeaways
- District Court for the Eastern District of New York ordered $5,518,902 in combined disgorgement, prejudgment interest, and civil penalties on June 16, the U.S.
- Although users' dashboards displayed what appeared to be profitable trades, the SEC alleged the platform never executed any crypto transactions.
- Investor funds weren’t used to trade, but rather went to bank accounts in Hong Kong, the SEC said.
The U.S. District Court for the Eastern District of New York ordered $5,518,902 in combined disgorgement, prejudgment interest, and civil penalties on June 16, the U.S. Securities and Exchange Commission (SEC) announced.
The agency alleged that from September 2023 to June 2024, scheme participants posed as financial-industry professionals in WhatsApp groups, built trust with investors, and then directed them to deposit funds into NanoBit.
Although users' dashboards displayed what appeared to be profitable trades, the SEC alleged the platform never executed any crypto transactions. At least 18 investors lost nearly $1 million in crypto and fiat currency, according to the SEC’s complaint.
Article preview — originally published by CoinDesk. Full story at the source.
Read full story on CoinDesk →
More top stories
Also covered by
Aggregated and edited by the Scoop newsroom. We surface news from CoinDesk alongside other reporting so you can compare coverage in one place.
Editorial policy · Corrections · About Scoop