SEC charges Texas man with $12.3M crypto fraud using fake AI trading bots
The SEC charged Texas man Nathan Fuller with raising $12.3 million from 150 investors through a crypto fraud scheme built around fake AI trading bots.
The Securities and Exchange Commission has charged a Texas man with running a crypto fraud scheme that raised $12.3 million from roughly 150 investors by falsely claiming to use AI-powered trading bots to generate guaranteed returns.
Nathan Fuller, a resident of Cypress, Texas, operated the scheme through his company Privvy Investments, LLC, and under the assumed business name Gateway Digital Investments between at least October 2022 and mid-2024, according to the SEC’s complaint filed in the US District Court for the Southern District of Texas.
Fuller allegedly promised investors returns of 40% to 50% within 30 to 45 days, with some told they could make guaranteed profits exceeding 100% in as little as 21 days. To back up the pitch, he claimed investor funds were secured by a surety bond, insured by the Federal Deposit Insurance Corporation (FDIC) and protected by a professional liability insurance policy. None of it was true, the SEC alleges.