Here’s a more concise, streamlined rewrite with a clean news style:

The operators built credibility with investors through WhatsApp before diverting funds to Hong Kong bank accounts rather than executing any real crypto trades.

A New York federal judge has entered a $5.5 million default judgment against NanoBit Limited and five related defendants over an alleged relationship-based crypto investment scheme.

On June 16, the U.S. District Court for the Eastern District of New York ordered $5,518,902 in disgorgement, prejudgment interest, and civil penalties, according to the U.S. Securities and Exchange Commission (SEC).

The SEC said that from September 2023 to June 2024, the defendants posed as finance professionals in WhatsApp groups, built trust with investors, and directed them to deposit funds into the NanoBit platform.

Although the platform showed fabricated trading profits, no actual crypto transactions were executed, the regulator alleged. At least 18 investors lost nearly $1 million in combined crypto and fiat assets.

Instead of being used for trading, funds were funneled to Hong Kong accounts, with more than $2 million transferred offshore and substantial crypto holdings misappropriated.

NanoBit also falsely claimed that an affiliate, NanobitUS Securities, was registered with the SEC and linked to reputable financial firms.

The defendants—NanoBit Limited, Radiant Horizons Limited, Sweet Karma Fashion Inc., Zhao Tropical Deli Inc., Jiajie Liu, and Hua Zhao—failed to appear in court. The judge deemed the default willful and found no credible defense.

NanoBit Limited faces the largest penalties, including over $532,000 in disgorgement, nearly $82,000 in interest, and a $1.1 million fine. The three other corporate entities were each fined $1.1 million, while Liu and Zhao must pay $120,000 and $55,000, respectively, within 30 days.

The court also permanently barred all six defendants from violating federal anti-fraud laws and from participating in securities offerings or transactions, though Liu and Zhao may continue trading in personal accounts.

The SEC filed the complaint in September 2024 alongside a parallel case involving another alleged fake platform, CoinW6, marking some of its first enforcement actions targeting relationship-investment crypto scams. A seventh defendant, Fei Liao, was named in the original complaint but not included in the default judgment.