SEC charges Texas man with $12.3M crypto fraud using fake AI trading bots
The SEC charged Nathan Fuller of Cypress, Texas, with running a crypto fraud scheme through Privvy Investments and Gateway Digital Investments that raised $12.3 million from about 150 investors from October 2022 to mid-2024. Fuller allegedly claimed AI-powered trading bots would use high-frequency crypto arbitrage to deliver guaranteed returns of 40% to 50% in 30 to 45 days, and even over 100% in 21 days. He also falsely said investor funds were protected by a surety bond, FDIC insurance, and professional liability coverage. According to the SEC, the bots did not work as promised. Fuller allegedly used at least $6.2 million for personal expenses and about $5.5 million to make Ponzi-like payments to earlier investors, while sending fake account statements and fabricated correspondence to conceal the fraud. The SEC is seeking injunctions, disgorgement, and civil penalties.
