The U.S. Securities and Exchange Commission (SEC) announced on June 30 that the U.S. District Court for the Eastern District of New York issued a final judgment on June 16 in the fraud case against cryptocurrency platform NanoBit Limited, ordering four defendant entities and two individuals to pay a total of approximately $5.4 million in penalties, disgorgement, and prejudgment interest, and imposing a permanent injunction against all defendants.
Penalties and Compensation Amounts for Each Defendant
The court ordered the following compensation amounts:
NanoBit Limited: Fines of $1.18 million + disgorgement of $532,000 + prejudgment interest of $81,200, totaling approximately $1.8 million
Radiant Horizons: Fines of $1.18 million
Sweet Karma: Fines of $1.18 million
Zhao Deli: Fines of $1.18 million
Liu Jiajie (Liu Jiajie) (one of the masterminds): approximately $120,000 in penalties, disgorgement, and prejudgment interest
Fraud Methods: Social Media Recruitment, Fake Dashboard, and Impersonating SEC Registration Status
SEC litigation materials show that the involved parties first recruited investors on social media platforms such as Instagram, then had them join WhatsApp groups, where they impersonated financial professionals. Investors were shown a fake trading dashboard displaying continuously growing returns, creating the illusion of capital appreciation. NanoBit falsely claimed that its affiliate NanobitUS Securities was an SEC-registered compliant broker-dealer and promoted a fraudulent initial coin offering (ICO) that promised generous returns.
The SEC noted that some investors faced excuses when attempting to withdraw or were asked to pay additional fees; investors who questioned the platform's legitimacy were removed from the WhatsApp group.
Final Court Judgment: Permanent Injunction and Securities Law Violation Determination
The U.S. District Court for the Eastern District of New York found all defendants in violation of U.S. securities laws on June 16, 2026, and issued a permanent injunction prohibiting all defendants from engaging in any issuance, purchase, or sale of securities. This judgment is the final judicial ruling after the SEC filed its lawsuit in September 2024.
Frequently Asked Questions
What is the scale of losses for NanoBit victim investors?
SEC litigation materials show that at least 18 investors suffered losses. The defendants transferred over $2 million to Hong Kong bank accounts and misappropriated hundreds of thousands of dollars worth of investor crypto assets. No actual transactions ever occurred on the NanoBit platform, and all displayed investment returns were false.
What specific legal consequences does the permanent injunction have for the defendants?
The court's injunction prohibits NanoBit, Radiant Horizons, Sweet Karma, Zhao Deli, and Liu Jiajie from engaging in any form of issuance, purchase, or sale of securities. Violators of the permanent injunction will face contempt of court consequences, which may include additional fines or imprisonment.
Did the SEC have similar crypto fraud enforcement actions before and after the NanoBit case?
According to the background mentioned in the SEC's June 30 announcement, in May 2026, the SEC filed charges against a Texas man for allegedly defrauding 150 investors of over $12 million using a fake AI trading bot; in April 2026, the SEC filed charges in a case related to Bitcoin Latinum, which raised approximately $16 million from hundreds of investors through fraud.
