SEC sues Texas man for $12.3M crypto fraud using fake AI trading bots
The SEC charged Nathan Fuller with operating a $12.3 million cryptocurrency fraud scheme through Privvy Investments LLC, falsely claiming to use proprietary AI trading bots to generate guaranteed profits of up to 100% in 21 days. Fuller allegedly fabricated investor protections including FDIC insurance, money-transmitter licenses, and insurance certificates, and misappropriated at least $6.2 million for personal expenses while making Ponzi-like payments to earlier investors.
What happened
On May 28, 2026, the SEC sued Nathan Fuller and his company Privvy Investments LLC over an alleged $12.3 million cryptocurrency fraud. The complaint, filed in federal court in Houston, alleges Fuller raised funds from roughly 150 investors across nine states and two foreign countries operating between October 2022 and mid-2024.
Fuller allegedly promised investors returns of 40% to 50% within 30 to 45 days, or more than 100% in as little as 21 days, claiming he had built proprietary AI trading bots that performed high-frequency arbitrage with 3% loss caps. The SEC alleges the bots had no stop-loss or AI functionality and that Fuller spent only about $380,000 of the $12.3 million raised on actual crypto purchases.
Reported impact
The SEC alleges Fuller misappropriated at least $6.2 million for personal expenses including a roughly $1 million house, gambling, trading cards, travel, and a Jeep. He also allegedly used about $5.5 million to make Ponzi-like payments to earlier investors.
Index analysis
Fuller allegedly fabricated investor protections by falsely claiming investor funds were backed by FDIC insurance, a Texas money-transmitter license, and surety bonds. The SEC says he altered a genuine $2 million general-liability insurance certificate to show $5 million in professional-liability coverage and invented fake entities including 'Texas Guarantors & Securities,' 'Digital Currency Capital Group,' and 'Blockchain Audit Solutions.'
Fuller allegedly created a fake app displaying phantom account balances, sent bogus statements showing gains above 334%, and used ChatGPT to write fraudulent letters claiming accounts were under audit and needed KYC verification.
Governance controls
No registration statement was filed with the SEC or any state for the investment offerings, the complaint alleges.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.