Foresight News: SEC Files First-Ever Charges Against Fake Crypto Platforms NanoBit and CoinW6

The Securities and Exchange Commission (SEC) has accused fake cryptocurrency platforms NanoBit and CoinW6 of defrauding investors and stealing their funds. This marks the agency's first-ever charges against such scams.

On Tuesday, the SEC filed two lawsuits in the U.S. District Court for the Eastern District of New York and the U.S. District Court for the Central District of California against five entities and three individuals.

The lawsuits allege that investors were lured into "relationship investment schemes" through social media platforms, primarily WhatsApp, LinkedIn, and Instagram.

Gurbir S. Grewal, Director of the SEC's Enforcement Division, stated in a Tuesday release: "Relationship investment scams, including those involving crypto asset investments, pose a significant risk of catastrophic harm to retail investors, and the threat is rapidly growing as these scams become more popular among fraudsters."