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A federal court in New York issued a $5.5 million default judgment against NanoBit Limited and five related defendants for running a fraudulent Crypto trading platform, according to CoinDesk’s coverage. The U.S. District Court for the Eastern District of New York entered the order on June 16, 2026. This ruling concludes one of the Securities and Exchange Commission’s earliest enforcement actions targeting relationship-based cryptocurrency scams. The case revealed serious harm, with at least 18 investors losing nearly $1 million during 2023 and 2024, the SEC claimed in its official statement.
The SEC charged NanoBit and its affiliates with operating a “pig-butchering” scam, where fraudsters create trust with investors before stealing funds. Scheme participants wired more than $2 million offshore, mostly to Hong Kong bank accounts. Hundreds of thousands in crypto assets were also stolen without authorization. This scheme had a wide and deceptive reach.
The scam occurred from October 2023 to June 2024, Techtimes reports, victimizing at least 18 people who invested fiat. NanoBit’s largest penalty totals nearly $1.8 million, which includes disgorgement of $532,649, prejudgment interest of $81,957, and a civil penalty of $1,182,251.
Financial judgments and individual penalties
The $5,518,902 judgment combines disgorgement, prejudgment interest, and civil penalties against six defendants. This ranks among the SEC’s more substantial settlements in crypto fraud this year, per Blockonomi’s coverage. Corporate affiliates Radiant Horizons Constrained, Sweet Karma Fashion Inc., and Zhao Tropical Deli Inc. each faced a $1.18 million penalty.
Individual defendant Jiajie Liu, a principal fraud architect, was ordered to pay about $120,000 for penalties, disgorgement, and interest. Another defendant, Hua Zhao, owes approximately $55,000 in penalties as well.
The NanoBit platform mainly used WhatsApp groups where brokers falsely claimed success in crypto trades, creating an illusion of legitimacy.
Context within the broader SEC crypto enforcement
This ruling comes amid a broader SEC campaign that includes a $12.3 million AI crypto arbitrage case involving Texas resident Nathan Fuller, disclosed in May 2026. The SEC’s growing litigation portfolio highlights its drive to police deceptive practices across emerging platforms.
Implications for investors market regulation
The case stresses the necessity of due diligence and skepticism toward unsolicited offers and platforms lacking transparent regulation. Techtimes notes that the 18 investors lost almost $1 million combined.
Published research links increased enforcement to better investor safeguards.
Future regulatory landscape for cryptocurrency
The EU’s Markets in Crypto-assets Regulation (MiCA) will reshape compliance across the European Economic Area from July 1, 2026. CoinDesk reports that about 80% of crypto firms would struggle to comply with MiCA, which threatens their operations.
Ongoing challenges and enforcement outlook
The SEC announced the default judgment on June 16, after the U.S. District Court in New York finalized the order.
The parties include the SEC, NanoBit Limited, and several connected defendants, including corporate affiliates Radiant Horizons Constrained, Sweet Karma Fashion Inc., and Zhao Tropical Deli Inc.
