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Every state-changing event for NanoBit (Fake Crypto Platform — SEC Pig Butchering Judgment): moderation decisions on community submissions, plus corrections and updates from the news pipeline. URL-based decisions carry three independent witnesses — the original source, an Internet Archive snapshot taken at submission time, and a Solana memo signed by our publicly-disclosed publisher key.

1. #1publishby system:backfill

   2026-07-01 17:07:30Z
   Score: ? → ? (no score change)
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   ●mainnet-betaslot 430,133,902

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   no5wL2Y9p8P9…HA7asscwcopyexplorer ↗

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   {"actor":"system:backfill","investigation_id":"a15fb769-6e8a-4ea7-b163-5c0555266b92","kind":"publish","page_slug":"nanobit-fake-crypto-platform-sec-pig-butchering-judgment","published_at":"2026-07-01T17:07:30.168Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"NanoBit (Fake Crypto Platform — SEC Pig Butchering Judgment)","sections":[{"content":"NanoBit was a fake cryptocurrency trading platform with no operational trading infrastructure. From approximately September 2023 to June 2024, operators posed as financial industry professionals in WhatsApp investment groups, built trust with prospective investors, and directed them to deposit cryptocurrency and fiat currency into the NanoBit platform. Although user dashboards displayed what appeared to be profitable trades, the SEC alleged that no real crypto transactions were ever executed on the platform. The scheme also falsely claimed that an affiliated entity, NanobitUS Securities, was a registered broker-dealer with the SEC — a claim the SEC confirmed was false. When investors attempted to withdraw funds, they were unable to do so, and scheme participants subsequently disappeared. More than $2 million in investor funds were transferred to bank accounts in Hong Kong, with additional hundreds of thousands of dollars in crypto assets also misappropriated.","heading":"Scheme Overview","severity":"critical","sources":[{"credibility":2,"name":"SEC wins $5.5 million default judgment over alleged fake crypto platform NanoBit — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2026/06/30/sec-wins-usd5-5-million-default-judgment-over-alleged-fake-crypto-platform-nanobit"},{"credibility":2,"name":"SEC Charges 3 Individuals, 5 Companies With Operating Pig Butchering Scams — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2024/09/17/sec-charges-3-individuals-5-companies-with-operating-pig-butchering-scams"},{"credibility":1,"name":"SEC NanoBit Litigation Release LR-26110 — SEC.gov","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26110"}]},{"content":"The SEC complaint named four corporate entities and three individuals. The corporate defendants are: NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., and Zhao Tropical Deli Inc. The individual defendants are: Jiajie Liu (age 28 at time of charges), of Los Angeles, California; Fei Liao (age 29 at time of charges), of San Gabriel, California; and Hua Zhao (age 26 at time of charges), of Flushing, New York. None of the six defendants included in the final default judgment appeared in court. Fei Liao was separately brought into federal custody on May 3, 2024, on criminal charges of conspiracy to commit wire fraud and conspiracy to commit money laundering filed in the Central District of California, and was not included in the civil default judgment. On February 19, 2026, Liao pleaded guilty to conspiracy to commit money laundering and was sentenced to 40 months in federal prison; he was ordered to forfeit over $2.3 million and pay restitution of more than $2.8 million to victims who had directed money to his accounts.","heading":"Defendants","severity":"critical","sources":[{"credibility":2,"name":"SEC Charges 3 Individuals, 5 Companies With Operating Pig Butchering Scams — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2024/09/17/sec-charges-3-individuals-5-companies-with-operating-pig-butchering-scams"},{"credibility":1,"name":"SEC NanoBit Litigation Release LR-26110 — SEC.gov","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26110"},{"credibility":2,"name":"Pig Butchering Ring Ordered to Pay $5.5M After Faking Crypto Profits on WhatsApp — TechTimes","type":"news_article","url":"https://www.techtimes.com/articles/319398/20260630/pig-butchering-ring-ordered-pay-55m-after-faking-crypto-profits-whatsapp.htm"}]},{"content":"The SEC filed its initial civil complaint in September 2024, marking one of the agency's first enforcement actions specifically targeting a fake-platform pig butchering scheme under securities law. The case was filed in the U.S. District Court for the Eastern District of New York. On June 16, 2026, the court entered default judgments totaling $5,518,902 against six defendants. The breakdown of the civil judgment is as follows: NanoBit Limited was ordered to pay $532,649 in disgorgement, $81,957 in prejudgment interest, and a $1,182,251 civil penalty; Radiant Horizons Limited, Sweet Karma Fashion Inc., and Zhao Tropical Deli Inc. each owe $1,182,251 in civil penalties; Jiajie Liu was ordered to pay $60,603 in disgorgement, $9,485 in prejudgment interest, and a $50,000 civil penalty; and Hua Zhao was ordered to pay $4,500 in disgorgement, $704 in prejudgment interest, and a $50,000 civil penalty. All defendants were required to pay within 30 days of the judgment. Separately, Fei Liao faced and resolved criminal charges: he was sentenced to 40 months in federal prison on February 19, 2026, with a forfeiture order exceeding $2.3 million and restitution of more than $2.8 million.","heading":"Regulatory and Criminal Enforcement Actions","severity":"critical","sources":[{"credibility":2,"name":"SEC wins $5.5 million default judgment over alleged fake crypto platform NanoBit — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2026/06/30/sec-wins-usd5-5-million-default-judgment-over-alleged-fake-crypto-platform-nanobit"},{"credibility":1,"name":"SEC Wins $5.4M Default In 1st Crypto Pig Butchering Case — Law360","type":"news_article","url":"https://www.law360.com/articles/2495129/sec-wins-5-4m-default-in-1st-crypto-pig-butchering-case"},{"credibility":1,"name":"SEC NanoBit Litigation Release LR-26110 — SEC.gov","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26110"},{"credibility":2,"name":"SEC closes NanoBit fraud case with $5 million in penalties after default judgment — Cryptopolitan","type":"news_article","url":"https://www.cryptopolitan.com/sec-closes-nanobit-fraud-5-million-penalties/"}]},{"content":"At least 18 investors lost a combined total of approximately $967,000 in cryptocurrency and fiat currency. The SEC's complaint indicated that over $2 million in total investor funds were transferred offshore to bank accounts in Hong Kong, with additional crypto assets also misappropriated by scheme participants — suggesting the aggregate fraud exceeded direct victim losses due to layering through multiple accounts. Recovery of victim funds is considered essentially impossible. More than $2 million was transferred to Hong Kong-based bank accounts, and the United States does not have a bilateral civil enforcement treaty with Hong Kong or mainland China. This means even the court-ordered disgorgement and civil penalties are unlikely to translate into actual restitution for victims. The default judgments themselves are difficult to enforce given that all named defendants failed to appear in court and the underlying assets were moved offshore. Fei Liao's criminal restitution order of $2.8 million represents the most direct avenue for some victim recovery, though the amount collectible depends on assets within U.S. jurisdiction.","heading":"Victim Impact and Recovery Prospects","severity":"high","sources":[{"credibility":2,"name":"SEC wins $5.5 million default judgment over alleged fake crypto platform NanoBit — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2026/06/30/sec-wins-usd5-5-million-default-judgment-over-alleged-fake-crypto-platform-nanobit"},{"credibility":2,"name":"SEC Shuts Down $2M NanoBit Crypto Scam With Final Ruling — CryptoTimes","type":"news_article","url":"https://www.cryptotimes.io/2026/06/30/sec-shuts-down-2m-nanobit-crypto-scam-with-final-ruling/"},{"credibility":2,"name":"SEC wins NanoBit crypto fraud case as court orders over $5.5M — Crypto.news","type":"news_article","url":"https://crypto.news/sec-wins-nanobit-crypto-fraud-case-as-court-orders-over-5-5m/"}]},{"content":"The NanoBit scheme employed the 'pig butchering' fraud methodology, a term (derived from the Chinese phrase sha zhu pan) used to describe confidence fraud schemes in which operators fatten victims' trust over time before slaughtering them financially. In the NanoBit variant, operators posed as financial-industry professionals in WhatsApp group chats rather than via romantic social engineering. They built credibility by discussing investment strategies and allegedly touted fabricated initial coin offerings (ICOs) promising substantial returns. Once investors deposited funds, their account dashboards displayed fictitious profitable trades to encourage further deposits. Withdrawals were systematically blocked. The scheme is categorized by the SEC as a 'relationship investment scam,' signaling the agency's recognition of social-engineering fraud as a securities-law matter. The NanoBit case was cited alongside the SEC's parallel action against CoinW6, another fake trading platform that used romantic relationship tactics on LinkedIn and Instagram.","heading":"Pig Butchering Methodology","severity":"critical","sources":[{"credibility":2,"name":"SEC Files Charges Against NanoBit and CoinW6 in First Pig Butchering Related Action — TRM Labs","type":"research","url":"https://trmlabs.com/post/sec-files-charges-against-nanobit-and-coinw6-in-first-pig-butchering-related-action"},{"credibility":1,"name":"SEC Charges Multiple Individuals and Entities in Relationship Investment Scams — SEC.gov Press Release","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2024-134"},{"credibility":2,"name":"SEC Hits Pig Butchering Scammers for the First Time — Finance Magnates","type":"news_article","url":"https://www.financemagnates.com/cryptocurrency/sec-hits-pig-butchering-scammers-for-the-first-time-busts-two-fake-crypto-platforms/"}]},{"content":"As part of the scheme, NanoBit operators falsely represented that an affiliated entity, NanobitUS Securities, was a registered broker-dealer with the SEC. This claim was fabricated. No such registration existed. The false claim was used to lend apparent legitimacy to the platform and persuade investors that their funds were deposited with a regulated financial institution. The SEC confirmed the claim was untrue as part of its complaint. Making false broker-dealer registration claims constitutes a violation of federal securities law independent of the underlying fraud.","heading":"False Regulatory Claims","severity":"critical","sources":[{"credibility":1,"name":"SEC Charges Multiple Individuals and Entities in Relationship Investment Scams — SEC.gov Press Release","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2024-134"},{"credibility":1,"name":"SEC NanoBit Litigation Release LR-26110 — SEC.gov","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26110"}]},{"content":"The SEC's action against NanoBit and the resulting June 2026 default judgment have been described in multiple reports as among the first securities-fraud judgments the agency has obtained specifically targeting a fake-platform pig butchering scheme. Law360 described the NanoBit judgment as the SEC's first judgment in a crypto 'pig butchering' case. This represents a significant expansion of securities-law enforcement into confidence fraud schemes that exploit fake cryptocurrency trading infrastructure. The parallel criminal conviction of Fei Liao in the Central District of California, resulting in 40 months imprisonment, further signals a coordinated civil-criminal approach to pig butchering enforcement by U.S. authorities.","heading":"Precedential Significance","severity":"medium","sources":[{"credibility":1,"name":"SEC Wins $5.4M Default In 1st Crypto Pig Butchering Case — Law360","type":"news_article","url":"https://www.law360.com/articles/2495129/sec-wins-5-4m-default-in-1st-crypto-pig-butchering-case"},{"credibility":2,"name":"NanoBit Defendants Hit With $5.5M Judgment in SEC's First Relationship Scam Case — AltsWire","type":"news_article","url":"https://altswire.com/nanobit-defendants-hit-with-5-5m-judgment-in-secs-first-relationship-scam-case/"}]}],"sources_used":[{"credibility":2,"name":"SEC wins $5.5 million default judgment over alleged fake crypto platform NanoBit — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2026/06/30/sec-wins-usd5-5-million-default-judgment-over-alleged-fake-crypto-platform-nanobit"},{"credibility":1,"name":"SEC Wins $5.4M Default In 1st Crypto Pig Butchering Case — Law360","type":"news_article","url":"https://www.law360.com/articles/2495129/sec-wins-5-4m-default-in-1st-crypto-pig-butchering-case"},{"credibility":2,"name":"Pig Butchering Ring Ordered to Pay $5.5M After Faking Crypto Profits on WhatsApp — TechTimes","type":"news_article","url":"https://www.techtimes.com/articles/319398/20260630/pig-butchering-ring-ordered-pay-55m-after-faking-crypto-profits-whatsapp.htm"},{"credibility":2,"name":"SEC Shuts Down $2M NanoBit Crypto Scam With Final Ruling — CryptoTimes","type":"news_article","url":"https://www.cryptotimes.io/2026/06/30/sec-shuts-down-2m-nanobit-crypto-scam-with-final-ruling/"},{"credibility":1,"name":"SEC Charges Multiple Individuals and Entities in Relationship Investment Scams — SEC.gov Press Release 2024-134","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2024-134"},{"credibility":1,"name":"NanoBit Limited et al. — SEC Litigation Release LR-26110","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26110"},{"credibility":2,"name":"SEC Charges 3 Individuals, 5 Companies With Operating Pig Butchering Scams — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2024/09/17/sec-charges-3-individuals-5-companies-with-operating-pig-butchering-scams"},{"credibility":2,"name":"SEC Files Charges Against NanoBit and CoinW6 in First Pig Butchering Related Action — TRM Labs","type":"research","url":"https://trmlabs.com/post/sec-files-charges-against-nanobit-and-coinw6-in-first-pig-butchering-related-action"},{"credibility":2,"name":"SEC closes NanoBit fraud case with $5 million in penalties after default judgment — Cryptopolitan","type":"news_article","url":"https://www.cryptopolitan.com/sec-closes-nanobit-fraud-5-million-penalties/"},{"credibility":2,"name":"SEC wraps up NanoBit crypto fraud case in final judgment, ordering over $5 million in fines — The Block","type":"news_article","url":"https://www.theblock.co/post/406613/sec-wraps-up-nanobit-crypto-fraud-case-final-judgment-ordering-5-million-fines"},{"credibility":2,"name":"SEC wins NanoBit crypto fraud case as court orders over $5.5M — Crypto.news","type":"news_article","url":"https://crypto.news/sec-wins-nanobit-crypto-fraud-case-as-court-orders-over-5-5m/"},{"credibility":2,"name":"SEC Secures $5.4M Judgment Against NanoBit Fraudulent Crypto Scheme — Blockonomi","type":"news_article","url":"https://blockonomi.com/sec-secures-5-4m-judgment-against-nanobit-fraudulent-crypto-scheme/"},{"credibility":2,"name":"SEC Hits Pig Butchering Scammers for the First Time — Finance Magnates","type":"news_article","url":"https://www.financemagnates.com/cryptocurrency/sec-hits-pig-butchering-scammers-for-the-first-time-busts-two-fake-crypto-platforms/"},{"credibility":2,"name":"Chinese national sentenced for role in pig butchering scheme — The Gilmer Mirror","type":"news_article","url":"https://www.gilmermirror.com/2026/02/19/chinese-national-sentenced-for-role-in-pig-butchering-scheme/"},{"credibility":2,"name":"NanoBit Defendants Hit With $5.5M Judgment in SEC's First Relationship Scam Case — AltsWire","type":"news_article","url":"https://altswire.com/nanobit-defendants-hit-with-5-5m-judgment-in-secs-first-relationship-scam-case/"}],"summary":"NanoBit Limited was a fraudulent cryptocurrency trading platform operated from approximately September 2023 to June 2024 that defrauded at least 18 investors of nearly $1 million via a 'pig butchering' scheme conducted through WhatsApp groups. The U.S. Securities and Exchange Commission filed charges in September 2024 against four corporate entities and three individuals, and on June 16, 2026, the U.S. District Court for the Eastern District of New York entered a $5,518,902 default judgment — one of the SEC's first securities-fraud judgments against a fake-platform pig butchering operation — though recovery is considered essentially impossible as more than $2 million was wired to bank accounts in Hong Kong.","timeline":[{"date":"2023-09-01","event":"NanoBit scheme begins; operators start recruiting victims through WhatsApp investment groups, posing as financial industry professionals.","source":"CoinDesk / SEC litigation release","source_url":"https://www.coindesk.com/policy/2026/06/30/sec-wins-usd5-5-million-default-judgment-over-alleged-fake-crypto-platform-nanobit"},{"date":"2024-05-03","event":"Fei Liao, 29, of San Gabriel, California, taken into federal custody on criminal charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in the Central District of California.","source":"CoinDesk (September 2024 charges article)","source_url":"https://www.coindesk.com/policy/2024/09/17/sec-charges-3-individuals-5-companies-with-operating-pig-butchering-scams"},{"date":"2024-05-20","event":"Fei Liao waives arraignment and pleads not guilty to criminal charges.","source":"Yahoo Finance / SEC charges reporting","source_url":"https://finance.yahoo.com/news/sec-charges-3-individuals-5-193009688.html"},{"date":"2024-06-01","event":"NanoBit scheme ends; operators cease activity after running from approximately September 2023 through June 2024.","source":"SEC litigation release LR-26110","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26110"},{"date":"2024-09-26","event":"SEC files civil complaint against NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao in the U.S. District Court for the Eastern District of New York, marking the agency's first pig butchering enforcement action.","source":"SEC Press Release 2024-134","source_url":"https://www.sec.gov/newsroom/press-releases/2024-134"},{"date":"2026-02-19","event":"Fei Liao pleads guilty to conspiracy to commit money laundering and is sentenced to 40 months in federal prison by U.S. District Judge J. Campbell Barker; ordered to forfeit over $2.3 million and pay restitution exceeding $2.8 million.","source":"DOJ Eastern District of Texas (sentencing report) / Gilmer Mirror","source_url":"https://www.gilmermirror.com/2026/02/19/chinese-national-sentenced-for-role-in-pig-butchering-scheme/"},{"date":"2026-06-16","event":"U.S. District Court for the Eastern District of New York enters default judgment of $5,518,902 against six defendants (NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Hua Zhao). All defendants failed to appear. Fei Liao excluded from civil default judgment.","source":"SEC Litigation Release LR-26576 / CoinDesk","source_url":"https://www.coindesk.com/policy/2026/06/30/sec-wins-usd5-5-million-default-judgment-over-alleged-fake-crypto-platform-nanobit"},{"date":"2026-06-29","event":"SEC issues formal litigation release (Litigation Release 26576) announcing the NanoBit default judgment.","source":"SEC.gov litigation release","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26110"},{"date":"2026-06-30","event":"Multiple crypto and mainstream media outlets report on the NanoBit judgment, citing it as the SEC's first securities-fraud judgment against a fake-platform pig butchering scheme.","source":"CoinDesk, The Block, CryptoTimes, Law360","source_url":"https://www.coindesk.com/policy/2026/06/30/sec-wins-usd5-5-million-default-judgment-over-alleged-fake-crypto-platform-nanobit"}]},"v":1}

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