A federal judge in New York entered a $5.5 million default judgment against NanoBit Limited and five related defendants over an alleged relationship-investment scam built on a fake crypto trading platform.

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

The agency alleged that from September 2023 to June 2024, scheme participants posed as financial-industry professionals in WhatsApp groups, built trust with investors, and then directed them to deposit funds into NanoBit.

Although users’ dashboards displayed what appeared to be profitable trades, the SEC alleged the…