Fake 'Financial Professionals' in WhatsApp Groups: Court Enters Default Judgment in NanoBit Crypto Relationship Scam

Published Oct. 12, 2026. Case statuses are current as of that date, based on SEC records.

It started in WhatsApp groups where scammers posed as financial industry professionals. It ended, according to the Securities and Exchange Commission, with investors' money wired to bank accounts in Hong Kong from a crypto trading platform where no trades ever took place.

On June 16, 2026, the U.S. District Court for the Eastern District of New York entered a final judgment by default against four entities and two individuals in SEC v. NanoBit Limited, et al., No. 2:24-cv-06517 [1]. The SEC filed the case Sept. 17, 2024.

What a default judgment means: The defendants did not defend the case. The judgment is binding, but it was not reached after a trial.

Who the judgment covers

According to the SEC's release, the judgment orders [1]:

• NanoBit Limited: $532,649 disgorgement, $81,957 prejudgment interest and a $1,182,251 penalty;
• Radiant Horizons: $1,182,251 penalty;
• Zhao Deli: $1,182,251 penalty;
• Sweet Karma: $1,182,251 penalty;
• a defendant identified in the release as "Liu": $60,603 disgorgement, $9,485 interest and a $50,000 penalty; and
• a defendant identified as "Zhao": $4,500 disgorgement, $704 interest and a $50,000 penalty.

The release does not give the individual defendants' full names, so we do not attempt to identify them further. All are permanently enjoined from violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5.

What the SEC alleged

According to the complaint, from at least September 2023 to at least June 2024 [1]:

1. The approach. Scheme participants solicited investors on social media apps and posed as financial professionals in WhatsApp groups to build trust.
2. The platform. They steered investors to the supposed NanoBit crypto trading platform, which falsely claimed its affiliate, NanobitUS Securities, was an SEC-registered broker.
3. The hook. The "professionals" promoted fake initial coin offerings as a way to earn big returns.
4. The theft. No transactions took place on NanoBit. Scheme participants wired more than $2 million to bank accounts in Hong Kong and misappropriated hundreds of thousands of dollars' worth of investors' crypto.

The SEC has issued an investor alert warning that fraudsters use social media and messaging apps to lure investors and that people should never rely solely on group-chat information to make investment decisions.

How an SEC civil case works

The Securities and Exchange Commission is a civil regulator. It cannot send anyone to prison. When it sues, it asks a federal judge for remedies such as an injunction (a court order not to break the securities laws again), disgorgement (giving up money obtained through the alleged violations), prejudgment interest, civil penalties, and sometimes bars from serving as a company officer or director or from working in the securities industry. Criminal charges, when they exist, are brought separately by the Justice Department.

A complaint is the SEC's side of the story. Until a court rules, or a defendant settles, the claims in it are allegations. Many defendants settle "without admitting or denying" the allegations, which means they accept a judgment and its penalties without conceding that the SEC's account is accurate. A "consent" that is "subject to court approval" is not final until a judge signs it. A "bifurcated" settlement resolves liability and the injunction now while leaving the dollar amounts for the judge to decide later. A default judgment is entered when a defendant does not respond to the lawsuit; it is a ruling against that defendant, but it is not a finding after a trial.

Red flags of group-chat investment scams

• Invitations to WhatsApp or Telegram "investment clubs" led by a "professor" or "analyst."
• A trading app or website you've never heard of, recommended by the group.
• Claims of SEC registration you can't confirm on Investor.gov or BrokerCheck.
• Exclusive "IPO" or new-coin allocations available only through the platform.
• Fees or "taxes" demanded before you can withdraw.

Before you hand anyone money for an investment

• Check the seller. Search the person and firm on Investor.gov and FINRA BrokerCheck. People who sell securities for commissions generally must be registered.
• Check the offering. Search the company name in the SEC's EDGAR database and your state securities regulator's enforcement actions.
• Treat "guaranteed" returns as a warning. Real investments carry risk. Promises of fixed monthly profits, or a guarantee that you can't lose your principal, are hallmarks of Ponzi-style schemes.
• Watch for pressure and secrecy. Deadlines, "sold out" claims, or requests to wire money to a personal or unfamiliar account deserve a pause.
• Ask how you get your money out. Excuses, delays, or new conditions when you try to withdraw are a serious red flag.

If you think you were affected

1. Save your records: account statements, wire confirmations, emails, texts and marketing materials.
2. Report it to the SEC at sec.gov/tcr and to your state securities regulator. If money was stolen, you can also report to the FBI at ic3.gov.
3. Follow the court case. If a receiver or fair fund is created, notices about claims are usually posted on the court docket or a receiver's website. The SEC does not charge fees to return money.
4. Beware of "recovery" offers. Scammers often target people who already lost money, promising to get it back for an upfront fee.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status	Source
NanoBit Limited; Radiant Horizons; Zhao Deli; Sweet Karma; defendants identified as "Liu" and "Zhao"	U.S. District Court, E.D.N.Y. (No. 2:24-cv-06517)	Final judgment by default entered June 16, 2026 (injunctions, disgorgement and penalties as listed above)	[1]

Statuses can change. An SEC complaint contains allegations, not findings, unless a court has ruled.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26576, "SEC Obtains Final Judgment Against Four Entities and Two Individuals in Alleged Relationship Investment Scam," June 29, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26576
2. Final Judgment, SEC v. NanoBit Limited, et al. https://www.sec.gov/files/litigation/litreleases/2026/judg26576.pdf

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Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, judgment, settlement or change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.