Overview
- The SEC filed a civil complaint on May 28 in the U.S. District Court for the Southern District of Texas accusing Nathan Fuller of running a $12.3 million fraud through Privvy Investments and Gateway Digital Investments.
- Prosecutors say Fuller raised funds from about 150 investors between October 2022 and mid‑2024 by promising extreme short‑term returns from proprietary AI trading bots that never operated as described.
- The complaint details that only about $380,000, roughly 3% of the money raised, was used to buy cryptocurrency while about $6.2 million went to personal expenses and about $5.5 million was used to pay earlier investors.
- The SEC says Fuller used forged account statements, fabricated documents, fictitious credentials and an AI‑generated audit letter to reassure investors and conceal losses.
- The agency is seeking permanent injunctions, disgorgement, civil penalties and industry bans, and the case follows a bankruptcy proceeding that reportedly found Fuller admitted to operating a Ponzi scheme and was denied discharge.