SEC sues Texas man over $12.3 million alleged crypto scheme built on fake AI trading bots
The SEC sued Texas resident Nathan Fuller, alleging he raised about $12.3 million from roughly 150 investors through a crypto scheme built on false claims of AI trading bots, guaranteed short-term returns, and insurance protections. The SEC says Fuller used Privvy Investments LLC and related names to sell passive interests in a supposed crypto arbitrage operation from October 2022 through mid-2024, promising 40% to 50% returns in 30 to 45 days and sometimes more than 100% in under a month. According to the complaint, only about $380,000 was actually used to buy cryptocurrency, with no bots involved and no profits generated. Fuller allegedly diverted at least $6.2 million for personal spending and used about $5.5 million for Ponzi-like payments to investors. The SEC also says he fabricated statements and AI-generated documents to conceal losses.
