SEC Targets Pig Slaughterhouse Fraud: Two Cryptocurrency Exchanges Charged

The US Securities and Exchange Commission (SEC) has made a decision first action against crypto scams “pig slaughter”. The Securities and Exchange Commission (SEC) has charged two allegedly fake cryptocurrency exchanges, NanoBit and CoinW6, with fraud.

Three individuals and five entities associated with the accused stock exchanges allegedly defrauded investors almost $3.2 million by building fake relationships online.

SEC targets fake cryptocurrency exchanges in groundbreaking action

In a significant move, the SEC filed charges against two allegedly fake cryptocurrency exchanges, NanoBit and CoinW6. The regulator says the platforms engaged in complex fraud, stealing millions from investors.

Today, we have charged multiple entities and individuals in connection with two investment frauds related to fake cryptocurrency trading platforms NanoBit and CoinW6. photo: twitter.com/cSPhTQt3Aj

— U.S. Securities and Exchange Commission (@SECGov) September 17, 2024

According to the SEC, the exchanges posed as legitimate cryptocurrency platforms and lured investors. false promises of high profits.

The SEC’s action is the first of its kind in the fight against “pig slaughter” fraud, which typically involves scammers establish false relationships with victims to deceive them and force them to invest.

According to the SEC, scammers targeted people using social media platforms such as LinkedIn and Instagram, ultimately moving the conversations to WhatsApp.

In his last statementSEC says NanoBit and CoinW6 created fake cryptocurrency ecosystems to defraud investorsThey falsely claimed to offer services such as staking, mining, and yield farming with high daily profits.

One of the accused platforms, CoinW6, convinced investors could earn up to 3% per day, but none of these services were real.

Fraudsters exploited personal relationships with investors to gain their trust and extort money from them.

The SEC said some victims were romantically manipulated, with the scammers posing as attractive professionals. These fake relationships were central to the fraud, leading victims to believe they invested in trustworthy people.

One victim was reportedly blackmailed into withdrawing their funds, with the scammers threatening to reveal their private information if additional payments were not made. This level of manipulation highlights the personal nature of the scam.

Fraudsters stole millions from victims

According to the SEC’s allegations, the victims collectively lost about $3.2 million. CoinW6 alone allegedly defrauded at least 11 investors out of more than $2.2 million.

Similarly, the regulator accused NanoBit and its partners defrauding 18 investors of almost $968,000It is alleged that NanoBit even lied by saying it was registered with the SEC to build investor confidence.

In addition, the US securities regulator found that NanoBit promoted completely fake initial coin offerings (ICOs). The SEC also claimed that the entire NanoBit platform was fake.

According to the case file, NanoBit sent investors’ money to Hong Kong bank accounts instead of transferring it to real investments. When victims tried to withdraw their money, the scammers demanded additional payments such as fake taxes and fees.

One investor was told he could not withdraw his funds until he paid an alleged “Ghana mining fee” of almost $11,000.

The SEC charges are part of a broader effort to crack down on these types of cryptocurrency scams. The SEC wants permanently stop the activities of both companies, fine them and oblige them to return the stolen money.

However, this case serves as a warning to the public to be cautious when dealing with investments promoted through personal contacts or unknown platforms.