SEC sues Texas man over $12.3 million crypto scheme built on fake AI trading bots
The U.S. Securities and Exchange Commission has sued Nathan Fuller of Texas over an alleged crypto investment scheme that raised about $12.3 million and was said to involve fake AI trading bots. The SEC’s complaint identifies roughly 150 investors who were affected by the conduct outlined in the filing.
The alleged crypto scheme operated from at least October 2022 through mid-2024 and was conducted through an entity named Privvy Investments LLC and the assumed business names Privvy Investments and Gateway Digital Investments. Promotional materials and offerings tied to those names presented opportunities that were described as involving automated trading technology and short-term crypto trading arrangements. The presentation to potential participants emphasized rapid trading activity and frequent account statements related to the program.
Investors were offered promised returns of 40% to 50% within 30 to 45 days, with some offerings claiming returns in excess of 100% in less than a month. Those return figures were presented as part of the investment opportunities promoted under the Privvy and Gateway names during the listed timeframe. The descriptions emphasized short holding periods and high percentage gains within weeks rather than months.
The summary above focuses on the operation timeline, the business names used, and the return promises described in the complaint. The content here is limited to those operational and promotional aspects of the alleged scheme.
Only about $380,000—approximately 3% of the funds raised—was used to purchase cryptocurrency without the involvement of trading bots. Those cryptocurrency purchases allegedly generated no profits. The complaint states the purchases were conducted without the involvement of the promoted trading bots.
The complaint alleges Nathan Fuller misappropriated at least $6.2 million for personal expenses. It also alleges he used about $5.5 million to make payments to investors in a manner described as Ponzi-like. These amounts are included among the financial figures set out in the filing.
The complaint further alleges Fuller fabricated account statements and referenced fictitious entities in investor materials. It alleges he used artificial intelligence to generate a letter from a purported auditing firm claiming accounts were under review. These assertions are presented in the SEC complaint and related records.
The U.S. Securities and Exchange Commission filed a complaint in the U.S. District Court for the Southern District of Texas against Nathan Fuller. In that complaint the SEC seeks permanent injunctions, disgorgement, civil penalties and an order barring Fuller from participating in securities offerings. The filing sets out the remedies the agency is pursuing in connection with the alleged scheme.
United States Department of Justice bankruptcy records indicate Fuller was denied discharge of more than $12.5 million in debt after admitting Privvy operated as a Ponzi scheme and that documentation had been fabricated. The same records reflect the admission referenced above and the resulting denial of a bankruptcy discharge. The complaint and related records describe seizure activity as falling under “Operation Economic Fury,” which is identified in the records as aimed at restricting Iran’s access to overseas revenue, banking networks and crypto infrastructure.
The Securities and Exchange Commission has brought a civil lawsuit against Nathan Fuller alleging a crypto investment operation that used purported AI trading bots and involved deceptive financial practices. Court filings describe investors being offered unusually high short-term trading returns and identify fabricated account statements, fictitious entities and other misleading materials as part of the alleged scheme. The SEC is seeking civil remedies in federal court while related legal records note bankruptcy proceedings and seizure activity tied to broader enforcement efforts.
