US SEC Sues Texas Man in Crypto Trading Fraud Scheme, Amount Involved Reaches $12.3 Million

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 crypto investment joint venture interests under the names of Privvy Investments LLC and Gateway Digital Investments, claiming to use an "AI high-frequency arbitrage bot" for crypto asset trading and promising investors a "guaranteed return" of 40% to over 100% within 21 to 45 days.

Regulators said Fuller also falsely claimed that investment funds were protected by FDIC insurance, surety bonds, and professional liability insurance. However, in reality, his so-called trading bot did not operate as advertised. The SEC alleges 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 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.