- The Securities and Exchange Commission (SEC) has charged NanoBit Limited and associated entities with fraudulent practices
- Charges include facilitating pig butchering scams in the first charges of their type
- The complaint outlines significant financial misconduct, including the falsification of financial records, which led to considerable financial losses for investors
The SEC has filed charges against NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., and several high-level individuals for allegedly engaging in fraudulent financial practices that resulted in millions of dollars in investor losses. According to the SEC, the companies manipulated financial documents and misrepresented their operations to attract investments, causing significant financial harm to unsuspecting investors. The charges relate to so-called pig butchering scams, representing the first charges of their type.
18 Investors Conned Out of $1 Million
In a legal action, the SEC has filed charges against NanoBit Limited and related companies for fraudulent activities that allegedly misled investors into pouring millions into their businesses. The court filing, which lists the accused companies along with individuals Jiajie Liu, Fei Liao, and Hua Zhao, details how these entities manipulated financial records and provided false information to secure investments.
The SEC claims that the fraud involved substantial sums of money, with millions of dollars at stake. Through its unknown officers and/or managers, NanoBit is accused of engaging in a coordinated scheme to defraud at least 18 investors out of approximately $967,835 in combined crypto assets and fiat currency.
Another of the accused firms, Sweet Karma Fashion Inc., is said to have fabricated financial statements that inflated their revenues by over $5 million. Another company, Zhao Tropical Deli Inc., allegedly misstated their financial position to secure large investments, which ultimately led to losses for their investors.
“These entities and their executives systematically misrepresented the health of their companies, causing significant financial harm to their investors,” said an SEC spokesperson. The regulatory body is pursuing civil penalties, which could amount to millions of dollars, alongside permanent injunctions to prevent further misconduct by these firms.
Individual Directors Also Targeted
The SEC is also targeting individual executives for their direct involvement. Jiajie Liu, Fei Liao, and Hua Zhao are alleged to have orchestrated the fraud by manipulating the financial statements and lying to investors. “These individuals played a central role in fabricating financial reports that misled investors, leading to substantial financial losses,” the SEC added.
The case seeks not only to penalize the companies involved but also to protect future investors from similar schemes. Civil penalties in the millions are expected, with the SEC aiming to establish strong legal precedents against corporate fraud.
