The US Securities and Exchange Commission has filed charges against Nathan Fuller, a resident of Cypress, Texas. He is accused of running a crypto investment scheme that raised about $12.3 million from roughly 150 investors.
According to the SEC’s complaint, Fuller marketed the program as an AI-driven, high-frequency crypto arbitrage operation. He claimed it could generate extraordinary returns — promising investors returns exceeding 40 to 50 percent within weeks. He also allegedly guaranteed profits of more than 100 percent within 21 days.
How the scheme worked
Between October 2022 and mid-2024, Fuller offered investment opportunities through Privvy Investments and related business names, the SEC alleges. He supposedly misrepresented the capabilities of his AI trading bots. He also falsely assured investors that their funds were protected by insurance and bonding arrangements.
Investigators further allege that Fuller diverted at least $6.2 million for personal use. He used approximately $5.5 million to pay earlier investors. This is a classic sign of a Ponzi-like structure. He also distributed fabricated account statements and fake communications to conceal the scheme.
Legal action and next steps
The SEC’s lawsuit was filed in federal court in Texas. Fuller is charged with securities registration and anti-fraud violations under federal securities laws. The agency is seeking injunctive relief, disgorgement of alleged ill-gotten gains, interest, and monetary penalties.
This case highlights ongoing risks in the crypto space, where AI claims are sometimes used to lure investors. It’s important for potential investors to verify such promises with caution.
