SEC Accuses NanoBit and CoinW6 of $2 Million Cryptocurrency Scam

In a major crackdown, the U.S. Securities and Exchange Commission (SEC) has filed charges against two cryptocurrency platforms, NanoBit and CoinW6, for defrauding investors out of more than $2 million. These platforms allegedly used popular social media apps like WhatsApp, LinkedIn, and Instagram to lure victims into fraudulent investment crypto schemes, contributing to the $4 billion in total cryptocurrency-related fraud in 2023.

The SEC has charged two crypto platforms, NanoBit and CoinW6, for defrauding investors out of over $2 million through crypto investment schemes promoted via WhatsApp, LinkedIn, and Instagram. NanoBit impersonated financial professionals to offer fake ICOs, while CoinW6 ran a pig butchering scam, promising high returns through fake crypto staking services. Combined with other fraud cases, crypto scams reached $4 billion in 2023.

• Defendant: NanoBit, CoinW6, and associated individuals.
• Crime: Fraudulent cryptocurrency investment solicitation using social media platforms (WhatsApp, Instagram, LinkedIn).
• Amount Defrauded: Over $2 million.
• Method: Impersonated financial professionals to gain trust and solicited investments, then siphoned funds via trading platforms. CoinW6 ran a pig butchering scheme, promising high returns through fake crypto asset staking and yield-farming.
• Penalties: Pending, case filed in U.S. District Court for the Eastern District of New York.
• Authorities: SEC and FBI.
• Plea: No known plea at the moment.
• Prosecutor's Statement: SEC's Gurbir S. Grewal emphasized the rising threat of fraud through social media platforms as scammers adapt to lure victims.

• October 2023 – June 2024: NanoBit allegedly conducted fraudulent schemes through WhatsApp groups, offering fake initial coin offerings (ICOs) to lure investors.
• July 2022 – December 2023: CoinW6 engaged in a "pig butchering" scam, contacting victims on LinkedIn and Instagram, pretending to offer legitimate crypto trading services. Victims were promised up to 3% daily returns through staking and farming but were instead defrauded.

The U.S. Securities and Exchange Commission (SEC) has charged NanoBit and CoinW6 with defrauding investors out of over $2 million through fraudulent cryptocurrency investment schemes. NanoBit, which operated from October 2023 to June 2024, impersonated financial professionals in WhatsApp groups to gain investors’ trust. CoinW6, from July 2022 to December 2023, conducted a "pig butchering" scheme, using LinkedIn and Instagram to attract victims with promises of high returns on crypto staking and yield-farming products. In both cases, the funds were siphoned to offshore accounts, primarily in Hong Kong. The SEC and the FBI are jointly investigating these scams, which are part of the larger $4 billion loss in crypto-related fraud for 2023.

A hardware wallet could have prevented the losses experienced in the NanoBit and CoinW6 scams, as they keep private keys offline, offering an extra layer of security against phishing attacks. Here are three wallet recommendations:

1. Ledger Nano X: Ideal for those who need to manage multiple cryptocurrencies securely. The Bluetooth functionality ensures offline security, keeping assets safe from phishing and hacking attacks that NanoBit and CoinW6 used to exploit victims.
2. Trezor Model T: Offers advanced security features like encrypted storage and passphrase protection. This would have been a good choice for victims, as it offers robust protection against fraudsters looking to drain accounts remotely.
3. SafePal S1: A highly secure wallet with no Bluetooth, Wi-Fi, or NFC. This ensures zero remote access, which could have protected victims in this case from schemes where scammers manipulated access via compromised apps like WhatsApp and Instagram.

Additional preventative steps:

• Be wary of unsolicited investment offers, particularly via social media.
• Verify any financial professional's credentials before investing.
• Use hardware wallets to keep your crypto assets secure and offline.