US Trustee Denies Bankruptcy Discharge in $12.5M Crypto Ponzi Case

A Texas court has denied Nathan Fuller's attempt to discharge $12.5 million in debts tied to his crypto Ponzi scheme. Fuller admitted to funneling investor funds from Privvy Investments LLC into luxury purchases, gambling, and real estate while falsifying records.

The ruling underscores bankruptcy courts' refusal to shield crypto fraudsters. "Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy," stated U.S. Trustee Kevin Epstein. Legal experts note such denials are becoming standard for crypto-related financial misconduct.

Victim recovery remains unlikely despite the legal victory. The case highlights ongoing regulatory scrutiny of crypto investment schemes as authorities demonstrate willingness to pursue bad actors through multiple legal channels.