The United States Securities and Exchange Commission (SEC) is filing charges against Nathan Fuller, a Texas resident, for running a fraudulent multi-million dollar crypto investment scheme. The case, filed in the United States Southern District of Texasseeks multiple sanctions against the defendant for allegedly defrauding 150 victims.
In a May 28 press release, the SEC said Fuller announced and sold interests in a cryptocurrency trading joint venture under the company Privvy Investments LLC, related to the trade names Privvy Investments and Gateway Digital Investments. The Cypress man allegedly promised some investors gains of 40-50% in 30 days, and others a ridiculously audacious 100% return in 21 days.
The Commission explains that Nathan Fuller lured unsuspecting victims of his fraudulent scheme with a business model centered around AI-based trading bots that executed high-frequency arbitrage trades on multiple crypto exchanges. Additionally, the insurance promises included a surety bond, a professional liability insurance policy, and authorization from the Federal Deposit Insurance Corporation.
150 investors defrauded in a classic crypto-ponzi scheme
According to the SEC report, Fuller’s crypto asset investment fraud took place between approximately October 2022 and mid-2024. During this period, the defendant raised $12.3 million from 150 investors. Despite promises of huge gains from an AI-powered trading bot, SEC investigations revealed that Fuller grossly misappropriated investors’ funds for two primary purposes.
First, the Texas resident had spent $6.2 million on personal expenses, including luxury items, gaming tours and a home valued at nearly $1 million for his ex-wife. During this time, Fuller also deployed $5.5 million to make Ponzi payments, creating the illusion of a functioning trading system to continue attracting more investors.
Fuller is accused of raping Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.which cover the illegal offer and sale of unregistered securities, as well as fraudulent and deceptive practices in the purchase or sale of securities.
The Commission is pushing for Fuller to be sanctioned on several occasions, including permanent injunctions, restitution of ill-gotten gains with prejudgment interest, and imposition of civil monetary penalties.
Crypto Market Overview
At the time of writing, the total crypto market capitalization stands at $2.48 trillion, representing a decline of approximately 9% over the past week. This market loss occurred amid broader bearish sentiment on the prices of Bitcoin and other crypto assets.
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