Fake Crypto Trading Platform Behind WhatsApp Scam Ordered to Pay $5.5M

A U.S. federal court has ordered six defendants to pay more than $5.5 million after they failed to respond to allegations that they operated a WhatsApp-based cryptocurrency investment scam built around a fake trading platform.

According to the U.S. Securities and Exchange Commission (SEC), the group targeted victims through WhatsApp chats, posing as financial professionals and gradually building trust before introducing NanoBit, a fraudulent crypto trading platform. Investors were encouraged to deposit both cryptocurrency and fiat funds after being promised attractive returns and shown fabricated account balances.

To make the scheme appear legitimate, the operators falsely claimed that an affiliated entity was SEC-registered and promoted fake crypto investment opportunities. The platform displayed fictional trading profits, giving victims the impression their investments were growing.

In reality, no genuine cryptocurrency trading took place. Funds sent by victims were diverted to wallets and bank accounts controlled by the scammers, including accounts in Hong Kong. When investors attempted to withdraw their money, they were asked to pay additional fees or were simply ignored and removed from WhatsApp groups.

The SEC said 18 investors lost nearly $967,000 through the scheme. The court's judgment includes disgorgement, civil penalties and permanent injunctions against the defendants, although recovering funds for victims remains uncertain because the operators did not appear in court and much of the money had already been transferred overseas.

The case highlights a common "pig butchering" tactic, where scammers cultivate relationships through messaging apps before directing victims to convincing but entirely fake trading platforms that display fabricated profits to encourage larger investments.