US SEC Sues Texas Man in Crypto Trading Scam, Allegedly Involving $12.3 Million

Odaily Odaily Planet Daily News The U.S. Securities and Exchange Commission (SEC) announced a lawsuit against Texas resident Nathan Fuller, accusing him of illegally raising approximately $12.3 million from about 150 investors through a fraudulent 'AI Crypto Trading Bot' project.

The SEC stated that from October 2022 to mid-2024, Fuller sold stakes in a crypto investment joint venture under the names Privvy Investments LLC and Gateway Digital Investments. He claimed to use 'AI high-frequency arbitrage bots' for crypto asset trading and promised investors 'guaranteed returns' of 40% to over 100% within 21 to 45 days.

Regulators allege that Fuller also falsely claimed that the investment funds were protected by FDIC insurance, surety bonds, and professional liability insurance. However, in reality, the so-called trading bots did not operate as advertised. The SEC charges that he misappropriated at least $6.2 million of investor funds for personal expenses and used approximately $5.5 million from new investors for 'Ponzi-like payments,' while also misleading investors through forged account statements and fabricated institutional communications.

The SEC has filed a lawsuit in the U.S. District Court for the Southern District of Texas, accusing Fuller of violating securities issuance and anti-fraud laws, and is seeking a permanent injunction, disgorgement of ill-gotten gains, and civil penalties.