A federal judge in New York entered a $5.5 million default judgment against NanoBit Limited and five related defendants for operating a 'pig-butchering' crypto scam via fake trading dashboards. From September 2023 to June 2024, the group built trust with investors through WhatsApp groups, posing as financial professionals. They directed victims to deposit funds into NanoBit, where dashboards showed fake profitable trades, but no actual crypto transactions occurred. At least 18 investors lost nearly $1 million in crypto and fiat currency. The SEC alleged that funds were misappropriated to Hong Kong bank accounts or wired offshore, with over $2 million sent abroad. NanoBit also falsely claimed an affiliate was SEC-registered. The six defendants never appeared in court, and the judge ruled the default willful. The judgment totals $5,518,902 including disgorgement, interest, and civil penalties. All defendants are permanently barred from securities offerings or transactions, except personal trading for two individuals. The SEC filed the complaint in September 2024 as one of its first enforcement actions against relationship-investment scams involving fake crypto platforms.

Key facts

• NanoBit and five defendants ordered to pay $5.5M for pig-butchering scam.
• Scam used WhatsApp to build trust, fake dashboards tricked 18 investors.
• Funds went to Hong Kong banks, not crypto trades; over $2M wired offshore.
• Defendants never appeared in court; default judgment entered June 16.
• All six permanently barred from securities offerings, except personal trading.