SEC sues Texas man over $12.3M crypto scheme built on fake AI trading bots

The U.S. Securities and Exchange Commission has sued Texas resident Nathan Fuller, alleging he raised about $12.3 million from roughly 150 investors through a crypto investment scheme built on false claims of AI-powered trading bots, guaranteed returns and insurance protections.

Fuller is said to have operated through Privvy Investments LLC and the assumed names Privvy Investments and Gateway Digital Investments, selling passive joint-venture interests in a purported crypto arbitrage trading operation from at least October 2022 through mid-2024.

He told investors that proprietary AI-based trading bots could scan markets, execute high-frequency arbitrage trades and limit losses through stop-loss coding, and promised returns of 40% to 50% within 30 to 45 days, sometimes exceeding 100% in under a month. The complaint alleges only about $380,000, roughly 3% of investor funds, was used to buy cryptocurrency without bot involvement, and those trades generated no profits.

United States, Texas

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