U.S. SEC Issues Final Judgment in NanoBit Crypto Fraud Case, Fines Exceed $5 Million

CoinFeed June 30 news, according to The Block, the U.S. Securities and Exchange Commission (SEC) has issued a final judgment against crypto platform NanoBit, ordering the defendants to pay over $5 million in fines. The case was initially filed in September 2024 during the Biden administration, with the SEC alleging that NanoBit and related individuals impersonated financial professionals on WhatsApp groups between September 2023 and June 2024 to gain investors' trust, induce them to invest in NanoBit, and falsely claimed that its affiliate was an SEC-registered broker-dealer. The SEC said that the so-called financial professionals promoted a fake initial coin offering, but no trades occurred on the NanoBit platform, and investor funds actually flowed to the fraud participants—of which over $2 million was transferred to Hong Kong bank accounts, and hundreds of thousands of dollars in crypto assets were misappropriated.