SEC Charges Texas Man With $12.3 Million Crypto Fraud Using Fake AI Trading Bots

The SEC charged Nathan Fuller, a Cypress, Texas resident, on May 28, 2026, with running a crypto fraud scheme through Privvy Investments LLC that raised $12.3 million from 150 investors between October 2022 and mid-2024. Fuller falsely promised 40%-100% returns using AI-powered trading bots, but spent $6.2 million on personal expenses including gambling tours and a house for his ex-wife, while deploying $5.5 million in Ponzi-like payments.

SEC fraud charges

• ▪The SEC filed the case against Nathan Fuller at the US Southern District of Texas
• ▪The SEC released a press statement about Nathan Fuller's charges on May 28, 2026
• ▪The US Securities and Exchange Commission filed charges against Nathan Fuller, a Texas resident, for running a multi-million dollar crypto investment fraud scheme
• ▪Nathan Fuller allegedly defrauded 150 victims through his crypto investment scheme

Fake AI trading bots

• ▪Nathan Fuller's insurance promises included a surety bond, a professional liability insurance policy, and clearance from the Federal Deposit Insurance Corporation
• ▪Nathan Fuller lured victims with a business model centered around AI-based trading bots that executed high-frequency arbitrage trading on several crypto exchanges
• ▪Nathan Fuller promised some investors gains of 40%-50% within 30 days
• ▪Nathan Fuller promised some investors a return of 100% in 21 days

Ponzi scheme operations

• ▪Nathan Fuller deployed $5.5 million to make Ponzi-like payments to create an illusion of a functional trading scheme
• ▪Privvy Investments LLC was linked to the business names Privvy Investments and Gateway Digital Investments
• ▪Nathan Fuller operated his crypto asset investment fraud from around October 2022 to mid 2024
• ▪Nathan Fuller raised $12.3 million from 150 investors during his fraudulent scheme
• ▪Nathan Fuller sold interests in a joint-venture crypto trading scheme under the company Privvy Investments LLC.

Misappropriation of investor funds

• ▪The SEC's investigations revealed that Nathan Fuller grossly misappropriated investors' funds despite promises of lofty gains from an AI-enabled trading bot
• ▪Nathan Fuller spent $6.2 million of investor funds on personal expenses, including luxury items, gambling tours, and a house valued at nearly $1 million for his ex-wife

Civil penalties sought

• ▪The SEC is seeking restitution of ill-gotten gains with prejudgment interest from Nathan Fuller
• ▪The SEC is seeking imposition of civil monetary penalties against Nathan Fuller
• ▪The SEC is seeking permanent injunctions against Nathan Fuller

Unregistered securities violations

• ▪Nathan Fuller is charged with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933
• ▪Nathan Fuller is charged with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder