The U.S. Securities and Exchange Commission (SEC) has accused two alleged fake crypto platforms, NanoBit and CoinW6, of defrauding investors through “relationship investment scams.” In its first charges alleging this type of scam, the SEC filed two complaints against five entities and three individuals in federal court.
The SEC alleges that the platforms used social media platforms like WhatsApp, LinkedIn, and Instagram to target potential investors. The scammers posed as financial professionals or wealthy individuals to build relationships with victims and convince them to invest in the fake crypto platforms.
“Relationship investment scams pose a significant risk to retail investors, and the threat is growing rapidly,” said Gurbir S. Grewal, director of the SEC’s Division of Enforcement.
The SEC’s complaints allege that NanoBit and CoinW6 made false claims about their platforms and misappropriated investors’ funds. The scammers allegedly used tactics such as demanding additional payments for taxes or fees and threatening to blackmail victims with compromising information.
