SEC Charges Texas Man Over $12.3M Crypto Investment Fraud Scheme

The US Securities and Exchange Commission (SEC) has taken action against a Texas man accused of running a cryptocurrency investment fraud scheme. According to the SEC, Nathan Fuller raised approximately $12.3 million from around 150 investors through his company Privvy Investments LLC.

Fuller allegedly promised unusually high returns through AI-powered trading, claiming that his proprietary artificial intelligence technology could generate consistent profits through high-frequency arbitrage trading across digital asset markets.

The SEC alleges that Fuller's claims were false and that he used investor funds for personal expenses, making Ponzi-like payments to earlier investors. The regulator also claims that the trading operation was not functioning as represented, with the AI-powered trading bots either not existing or failing to operate in the manner described to investors.

The SEC is seeking permanent injunctions, disgorgement of allegedly ill-gotten gains with prejudgment interest, and civil monetary penalties. This case highlights the ongoing risks associated with investment opportunities that promise unusually high returns while relying on unverifiable trading strategies or technological claims.