What to know:
- Texas man Nathan Fuller allegedly raised $12.3 million from 150 investors via a false AI crypto bot scheme promising up to 100% returns.
- Fuller allegedly diverted $6.2 million for personal use and $5.5M for Ponzi-like payments; only 3% of funds went to crypto trading.
- To cover losses, Fuller used fabricated statements and an AI-generated letter to fraudulently reassure investors.
The Securities and Exchange Commission (SEC) has filed a lawsuit against Nathan Fuller of Texas, accusing him of defrauding investors out of approximately $12.3 million. Fuller allegedly convinced around 150 people to invest in a cryptocurrency scheme by falsely promising AI-powered trading bots, guaranteed profits, and investment insurance.
A lawsuit filed in Texas federal court claims that Fuller ran their business using Privvy Investments LLC, also known as Privvy Investments and Gateway Digital Investments.
According to the SEC, he sold shares in a cryptocurrency investment scheme – which he claimed was a low-risk trading operation – from at least October 2022 until around mid-2024.
According to the agency, Fuller led investors to believe that special AI software could trade cryptocurrencies, make quick profits from market differences, and reduce potential losses with automatic safeguards.
The lawsuit claims investors were told they could earn between 40% and 50% on their money within 30 to 45 days, and sometimes even over 100% in under a month.
The SEC claims these statements were untrue. Their complaint alleges that only around $380,000 – about 3% of the money from investors – was actually used to buy cryptocurrency without using automated bots. The SEC states these purchases weren’t made with the promised bots and didn’t result in any earnings.
Instead, Fuller is accused of using at least $6.2 million for personal spending – things like buying a house, gambling, traveling, and purchasing vehicles. He also allegedly used around $5.5 million to make payments to investors in a way that resembled a Ponzi scheme.
When investors began to worry about withdrawing their money, Fuller allegedly created fake account statements to show profits. He also mentioned nonexistent companies and used AI to write a letter that appeared to be from an auditing firm. This letter falsely claimed investors’ accounts were being reviewed and would soon be transferred to a trust.
The Securities and Exchange Commission (SEC) accused Fuller of breaking rules against fraud and improper registration of investments. As a result, the SEC is asking the court to permanently prevent Fuller from working with investments, require them to give back any ill-gotten gains, and impose financial penalties.
According to the Justice Department and court records, this case stems from a previous bankruptcy where Fuller was unable to erase over $12.5 million in debt. This is because he confessed to running Privvy as a Ponzi scheme and falsifying documents.
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2026-05-30 20:42