SEC v. NanoBit Limited; Radiant Horizons Limited; Sweet Karma Fashion Inc.; Zhao Tropical Deli Inc.; Jiajie Liu; Fei Liao, et al., No. LR-26110, Eastern District of New York (Sept. 17, 2024) — Press Release
raw: NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao
NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao, No. 2:24-cv-06517 (E.D.N.Y. Sept. 17, 2024)
summary
The SEC charged four entities and three individuals for orchestrating a relationship investment scam using a fake crypto platform to steal over $2 million.
paragraph
The SEC charged NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao for violating federal antifraud provisions. The defendants allegedly used WhatsApp to impersonate financial professionals and solicit investments through a fraudulent crypto trading platform. The scheme resulted in over $2 million being wired to Hong Kong bank accounts and the misappropriation of hundreds of thousands of dollars in crypto assets.
narrative
The SEC has filed a complaint against four entities and three individuals, including Jiajie Liu, Fei Liao, and Hua Zhao, for orchestrating a relationship investment scam. Between October 2023 and June 2024, the defendants allegedly used social media and WhatsApp to impersonate financial professionals to build trust with investors. They solicited funds through a fraudulent crypto trading platform called NanoBit, falsely claiming its affiliate was an SEC-registered broker. The scheme involved touting fake initial coin offerings, leading investors to wire more than $2 million to bank accounts in Hong Kong. Additionally, the defendants misappropriated hundreds of thousands of dollars worth of investors' crypto assets. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties for violations of federal securities laws.
Classified crypto-securities(confidence 100%). EDGAR detection: forms 1-A/S-1/8-K· recall 43% / precision 2%. detection rule →
Statutes
15 U.S.C. § 77q(a)15 U.S.C. § 78j(b)
Parties
Securities and Exchange CommissionNanobit CorporationSweet Karma Fashion, Inc.Zhao Tropical Deli Inc.Fei LiaoRadiant Horizons LimitedHua ZhaoJiajie LiuNanoBit Limited
Keywords
nanobitlimitedinczhaonanobit limitedlimited radiantradiant horizonshorizons limitedlimited sweetsweet karmakarma fashionzhao tropicaltropical delisecurities exchangeexchange commission
Extracted insights
Dollar amounts 1
- $2.00M $2 million $1M–$10M
Entities 4
- agency its affiliate, nanobitus securities, was a sec-registered broker
- person scheme participants
- agency sec's office of investor education and advocacy
- agency Securities and Exchange Commission
Triples 9
- Securities And Exchange Commission charged NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao
- Scheme Participants impersonated financial industry professionals in WhatsApp groups
- NanoBit falsely claimed its affiliate, NanobitUS Securities, was a SEC-registered broker
- Scheme Participants touted fake initial coin offerings as a way for investors to make substantial returns
- Scheme Participants wired more than $2 million to bank accounts in Hong Kong
- Scheme Participants misappropriated hundreds of thousands of dollars' worth of investors' crypto assets
- Securities And Exchange Commission seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against each defendant
- SEC's Office Of Investor Education And Advocacy issued an Investor Alert about these scams
- SEC encourages investors to check the backgrounds of anyone selling or offering them an investment using Investor.gov
Extracted body text (2,935c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26110 / September 17, 2024 Securities and Exchange Commission v. NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao, No. 2:24-cv-06517 (E.D.N.Y. filed Sept. 17, 2024) SEC Charges Four Entities and Three Individuals in Relationship Investment Scam The Securities and Exchange Commission today charged four entities and three individuals in connection with a relationship investment scam involving the alleged fake crypto asset trading platform NanoBit. The SEC's complaint alleges that defendants, working with other scheme participants, solicited investors via social media apps, lied to them to gain their trust and confidence, and then stole their money. This case is among the SEC's first enforcement actions alleging these types of scams. The SEC's complaint alleges that from approximately October 2023 to at least June 2024, scheme participants impersonated financial industry professionals in WhatsApp groups to build investors' trust and then solicited their investments through the supposed NanoBit crypto asset trading platform. In order to persuade investors that the platform was safe, NanoBit allegedly falsely claimed that its affiliate, NanobitUS Securities, was a SEC-registered broker. The supposed financial professionals allegedly then touted fake initial coin offerings as a way for the investors to make substantial returns. But, as alleged, the NanoBit platform was fake and investors' funds in fact went to scheme participants who wired more than $2 million to bank accounts in Hong Kong and misappropriated hundreds of thousands of dollars' worth of investors' crypto assets. The complaint, filed in U.S. District Court for the Eastern District of New York, charges NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao with violating the antifraud provisions of the federal securities laws. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against each defendant. The investigation was conducted by Jeremy Brandt, Michael DiBattista, and Neil Hendelman of the New York Regional Office and was supervised by Rebecca Reilly and Sheldon L. Pollock. The litigation is being conducted by Todd Brody and Jeremy Brandt and being supervised by Alexander Vasilescu. The SEC's Office of Investor Education and Advocacy, in collaboration with the CFTC's Office of Customer Education and Outreach, FINRA, and NASAA, has issued an Investor Alert about these scams, warning that fraudsters may reach out to investors and slowly build trust before convincing them to "invest" their money and then defrauding them through fake investments. The SEC encourages investors to check the backgrounds of anyone selling or offering them an investment using Investor.gov.
OCR text (2,935c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26110 / September 17, 2024 Securities and Exchange Commission v. NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao, No. 2:24-cv-06517 (E.D.N.Y. filed Sept. 17, 2024) SEC Charges Four Entities and Three Individuals in Relationship Investment Scam The Securities and Exchange Commission today charged four entities and three individuals in connection with a relationship investment scam involving the alleged fake crypto asset trading platform NanoBit. The SEC's complaint alleges that defendants, working with other scheme participants, solicited investors via social media apps, lied to them to gain their trust and confidence, and then stole their money. This case is among the SEC's first enforcement actions alleging these types of scams. The SEC's complaint alleges that from approximately October 2023 to at least June 2024, scheme participants impersonated financial industry professionals in WhatsApp groups to build investors' trust and then solicited their investments through the supposed NanoBit crypto asset trading platform. In order to persuade investors that the platform was safe, NanoBit allegedly falsely claimed that its affiliate, NanobitUS Securities, was a SEC-registered broker. The supposed financial professionals allegedly then touted fake initial coin offerings as a way for the investors to make substantial returns. But, as alleged, the NanoBit platform was fake and investors' funds in fact went to scheme participants who wired more than $2 million to bank accounts in Hong Kong and misappropriated hundreds of thousands of dollars' worth of investors' crypto assets. The complaint, filed in U.S. District Court for the Eastern District of New York, charges NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, Fei Liao, and Hua Zhao with violating the antifraud provisions of the federal securities laws. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against each defendant. The investigation was conducted by Jeremy Brandt, Michael DiBattista, and Neil Hendelman of the New York Regional Office and was supervised by Rebecca Reilly and Sheldon L. Pollock. The litigation is being conducted by Todd Brody and Jeremy Brandt and being supervised by Alexander Vasilescu. The SEC's Office of Investor Education and Advocacy, in collaboration with the CFTC's Office of Customer Education and Outreach, FINRA, and NASAA, has issued an Investor Alert about these scams, warning that fraudsters may reach out to investors and slowly build trust before convincing them to "invest" their money and then defrauding them through fake investments. The SEC encourages investors to check the backgrounds of anyone selling or offering them an investment using Investor.gov.