Texas Court Denies Bankruptcy Discharge to $12.5M Crypto Ponzi Operator

A Texas court has ruled against Nathan Fuller, operator of the fraudulent Privvy Investments crypto scheme, barring him from discharging $12.5 million in debts owed to defrauded investors. The U.S. Trustee Program uncovered concealed assets and fabricated documents during bankruptcy proceedings.

Fuller diverted investor funds to luxury purchases, gambling, and real estate while running Privvy as a classic Ponzi structure. 'Fraudsters won't find sanctuary in bankruptcy,' stated U.S. Trustee Kevin Epstein, emphasizing the DOJ's vigilance against abuse of the bankruptcy system.

The judgment follows a 2023 Chapter 7 filing after Texas investors secured a receiver for Fuller's assets. Investigators found systematic deception, including falsified records and dual bankruptcy petitions for both Fuller and his sham company.