The Securities and Exchange Commission filed a civil fraud case against Nathan Fuller in the U.S. Southern District of Texas, accusing him of running a $12.3 million crypto investment scheme. Between October 2022 and mid-2024, Fuller raised money from roughly 150 investors by promising outlandish returns — 40% to 50% within 30 days, or 100% in just 21 days. The hook was a story about AI-based trading bots performing high-frequency arbitrage.
The pitch: AI bots and impossible returns
Fuller operated under two business names: Privvy Investments LLC, and the trade names Privvy Investments and Gateway Digital Investments. He told investors his automated bots could exploit tiny price differences across exchanges for consistent, rapid gains. The promised returns were so high they should have been a red flag — 100% in three weeks is far beyond what any legitimate trading strategy can reliably deliver. But the AI angle gave it a veneer of tech plausibility, and people bought in.
Where the $12.3 million went
The SEC says Fuller didn't actually run a profitable trading operation. Instead, he misappropriated $6.2 million for personal expenses: luxury items, gambling, and a house for his ex-wife. Another $5.5 million went to making Ponzi-like payments to earlier investors, creating the illusion that the scheme was functional. That meant some people got their promised payouts — but only because new money was propping up old money. It's a classic structure, just with a crypto wrapper.
The charges and what the SEC wants
Fuller is charged with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, plus Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Those are the standard anti-fraud provisions. The SEC is seeking permanent injunctions to stop Fuller from ever running a similar scheme, restitution with prejudgment interest, and civil monetary penalties. No criminal charges — this is a civil enforcement action, though the U.S. Attorney's office could choose to pursue a parallel criminal case.
The case now moves through the Southern District of Texas. Fuller has not yet filed a response in court, and no trial date has been set. Given the size of the alleged fraud — $12.3 million from 150 people — this one is likely to draw attention from both regulators and law enforcement.
