Texas Court Slams Door on $12.5M Crypto Ponzi Operator’s Discharge Bid

Justice bites back—hard. A Texas court just denied bankruptcy discharge to the mastermind behind a $12.5 million cryptocurrency Ponzi scheme, locking the exit door for good.

No Escape for Fraudsters

The ruling sends a clear message: play dirty with crypto, face permanent financial consequences. The operator’s attempt to wipe the slate clean via bankruptcy got shredded—proving even in decentralized finance, old-school accountability still hits hard.

Regulation’s Long Arm

While crypto zips toward the future, courts aren’t forgetting the basics. Fraud stays fraud. The $12.5m haul—now frozen in legal limbo—shows that when real money vanishes, real justice follows.

Another finance 'genius' learns the hard way: Ponzi schemes crash faster than a meme coin on margin call.

Privvy Founder Nathan Fuller’s Bankruptcy

Last year, in October, Nathan filed for Chapter 7 bankruptcy after a receiver was appointed to take possession of his assets in a lawsuit brought by investors in a Texas state court. After looking into the matter, the USTP’s Houston office filed a complaint against Fuller, claiming that he had hidden a lot of assets, failed to keep records, and made several false oaths about his bankruptcy case and a separate bankruptcy filing for Privvy.

Fuller admitted to running Privvy as a Ponzi scheme and making up fake documents to help the scheme after being found in civil contempt for not following court orders. Fuller also said that he lied under oath and made up bankruptcy papers to make it harder for the chapter 7 trustee in charge of his and Privvy’s bankruptcy cases.

After those admissions, Fuller did not respond to the USTP’s complaint, which led to a default judgment in the USTP’s favor. As per the latest verdict, Nathan is liable for more than $12.5 million in debt, and creditors can keep trying to collect their money. 

Also Read: Alabama Senator Warns GENIUS Act Could Hurt Small Banks