The U.S. Securities and Exchange Commission (SEC) has sued Texas resident Nathan Fuller, alleging he raised about $12.3 million from roughly 150 investors through a crypto investment scheme built around false claims of AI-powered trading bots, guaranteed returns, and insurance protections. According to a complaint filed in the U.S. District Court for the Southern District of Texas, Fuller operated through Privvy Investments LLC from at least October 2022 through mid-2024. The SEC claims Fuller promised investors returns of 40% to 50% within 30 to 45 days, but only about $380,000 (3% of funds) was used to purchase cryptocurrency without bots, generating no profits. Fuller allegedly misappropriated at least $6.2 million for personal expenses, including a home, gambling, travel, and vehicles, and used $5.5 million for Ponzi-like payments. He also fabricated account statements, referenced fictitious entities, and used AI to generate a fake auditing letter. The SEC seeks permanent injunctions, disgorgement, civil penalties, and a ban on securities offerings. This case follows a separate bankruptcy proceeding where Fuller was denied discharge of over $12.5 million in debt after admitting the scheme was a Ponzi.

Key facts

• SEC alleges Fuller raised $12.3M from 150+ investors via false AI trading bot claims.
• Only $380K (3%) was used for actual crypto trades, no bots involved, no profits.
• Fuller misappropriated $6.2M for personal use and $5.5M for Ponzi payments.
• He faked account statements and used AI to generate a fictitious audit letter.
• Fuller was previously denied debt discharge after admitting the scheme was a Ponzi.