WhatsApp pig-butchering scams have now reached the crypto circle; the SEC's ruling came too late.

The SEC obtained a default judgment of $5,518,902 in the U.S. District Court for the Eastern District of New York against Nanobit Limited and five defendants, alleging that they conducted a relationship investment scam on a fake crypto trading platform, requiring restitution, prejudgment interest, and civil penalties. The defendants posed as financial professionals, built trust in WhatsApp groups, induced investors to send money, and the platform did not execute trades. 18 investors lost over $1 million. The funds were not used for trading, were transferred to Hong Kong accounts, and overseas remittances exceeded $2 million. Investor assets were misappropriated. The court permanently enjoined the defendants from engaging in securities transactions and fraudulent conduct.