SEC Charges Texas Operator in $12.3M AI Crypto Trading Bot Scheme

Regulatory authorities in the US have taken action against a Texas-based operator, Nathan Fuller, for allegedly running a $12.3 million crypto trading bot scheme using artificial intelligence branding to mislead investors about their returns.

The SEC's investigation found that only 3% of the funds were used for actual trading, while the rest was spent on personal expenses and Ponzi payouts to earlier investors. This created a cycle that mimicked steady returns without underlying trading profits.

The operator allegedly promoted the tools as proprietary bots capable of scanning exchanges and executing high-frequency arbitrage strategies. However, investigators found that the system did not operate as described and lacked a transparent execution infrastructure.