SEC Charges Texas Man With $12.3 Million Crypto Fraud Using Fake AI Trading Bots

Nathan Fuller, a Texas resident, faces SEC charges for allegedly orchestrating a $12.3 million cryptocurrency fraud. Operating through Privvy Investments LLC and Gateway Digital Investments between October 2022 and mid-2024, Fuller raised funds from approximately 150 investors by promoting fictitious AI-powered trading bots.

Investors were lured with promises of 40-100% returns within 21 days, backed by claims of high-frequency arbitrage trading and stop-loss protections. Only $380,000 (3% of raised capital) was deployed for actual crypto trading. The majority—$6.2 million—allegedly funded personal expenditures including real estate, gambling, and luxury vehicles.

The scheme unraveled as Fuller reportedly fabricated account statements and deployed an AI-generated letter to conceal the operation. The SEC complaint highlights $5.5 million in Ponzi-like payments to earlier investors.