The U.S. Securities and Exchange Commission (SEC) announced the final resolution of its case against the cryptocurrency platform NanoBit. They will now have to pay a $5 million dollar fine, after it was confirmed that they deceived investors and misappropriated their funds in a fraudulent relationship investment scheme.
The regulatory body detailed that those involved formed a WhatsApp group and attracted victims by posing as financial professionals. They operated by promoting fake initial coin offerings (ICOs). Instead of executing legitimate transactions within the crypto platform, the scammers diverted more than $2 million dollars to bank accounts in Hong Kong.
This resolution marks a milestone in the SEC’s enforcement actions against financial scams in digital environments. Following the ruling, the agency issued an official alert warning the global community about the risks of using social networks and messaging applications to manage investments of doubtful origin.
Source: https://goo.su/tv0tTRc
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