Alleged Fraudster Orchestrates $12,500,000 Crypto Trading Scheme, Uses Funds for Ponzi-Like Payments and Personal Expenses: SEC

The U.S. Securities and Exchange Commission (SEC) has taken legal action against a Texas resident for his alleged involvement in a massive crypto asset fraud scheme that defrauded approximately 150 investors of around $12.3 million. Nathan Fuller, the individual in question, is said to have orchestrated the fraudulent scheme through Privvy Investments, LLC and other related entities like Gateway Digital Investments between October 2022 and mid-2024.

According to an SEC Litigation Release dated May 29, 2026, Fuller is accused of luring investors with promises of exceptional returns linked to purported AI-driven trading technology. He allegedly claimed that his “proprietary AI-based trading bots” would engage in high-frequency arbitrage trading in the crypto markets, guaranteeing investors returns of 40–50% within 30 to 45 days, with profits exceeding 100% in as little as 21 days. However, the SEC asserts that these representations were deceptive, and Fuller’s trading systems did not perform as advertised.

Instead of investing the funds as promised, the SEC alleges that Fuller misappropriated a significant portion of the investors’ money, using over $6.2 million for personal expenses and approximately $5.5 million to make Ponzi-like payments to earlier investors in an attempt to maintain the appearance of profitability. To further perpetuate the scheme, Fuller reportedly provided investors with counterfeit account statements, fabricated correspondence from fictitious entities, and false assurances regarding the security and insurance of their funds.

The SEC’s complaint against Fuller includes violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, as well as Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The regulatory agency is seeking permanent injunctions, the disgorgement of illicit gains along with prejudgment interest, and the imposition of civil penalties.

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