SEC Targets New Crypto Scam: Two Fake Exchanges Exposed

The U.S. Securities and Exchange Commission (SEC) has launched its first crackdown on "pig butchering" scams in the cryptocurrency space, targeting two alleged fraudulent platforms.

In a recent statement, the SEC revealed that it has filed lawsuits against five entities and three individuals connected to the fake exchanges NanoBit and CoinW6. The charges stem from accusations that these platforms swindled nearly $3.2 million from investors through deceptive practices and online engagement.

According to Gurbir Grewal, Director of the SEC’s Division of Enforcement, these cases highlight the growing risk of such investment scams, which increasingly rely on misleading online relationships to defraud victims.

CoinW6, which the SEC sued in California federal court, allegedly used a network of individuals posing as “young, attractive professionals” to deceive investors.

These scammers reportedly targeted victims via LinkedIn and Instagram, later fostering relationships on WhatsApp. They enticed investors with promises of high returns from non-existent crypto products and subsequently blackmailed them for additional payments or threatened to expose private messages.

Simultaneously, the SEC filed charges against NanoBit and six associates in New York federal court. The allegations suggest NanoBit defrauded at least 18 people out of nearly $968,000 by pretending to be financial experts and falsely claiming affiliation with a legitimate SEC-registered broker. The platform also purportedly promoted fake initial coin offerings and rerouted investor funds to Hong Kong.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.