US SEC Sues Texas Man in Crypto Fraud Scheme Involving $12.3 Million
Odaily Odaily Planet Daily News The U.S. Securities and Exchange Commission (SEC) announced a lawsuit against Nathan Fuller, a Texas resident, 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, operating through Privvy Investments LLC and Gateway Digital Investments, sold investment interests in a crypto joint venture. He claimed to use an "AI high-frequency arbitrage bot" for crypto asset trading and promised investors "guaranteed returns" of 40% to over 100% within 21 to 45 days.
Regulators stated that Fuller also falsely claimed that investor 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 alleges that Fuller misappropriated at least $6.2 million in investor funds for personal expenses and used approximately $5.5 million from new investors for "Ponzi-like payments," while misleading investors through falsified 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 offering and anti-fraud laws, and is seeking a permanent injunction, disgorgement of ill-gotten gains, and civil penalties.
