SEC sues Texas man over $12.3M fake AI crypto bot fraud!

The SEC has sued Texas resident Nathan Fuller, alleging he raised $12.3 million from roughly 150 investors through a crypto scheme built on fabricated AI trading bots, guaranteed returns, and fictitious insurance protections. Fuller operated through Privvy Investments LLC and Gateway Digital Investments, selling passive joint-venture interests in a purported crypto arbitrage operation from at least October 2022 through mid-2024.

Only about $380,000 — roughly 3% of investor funds — was ever used to purchase cryptocurrency, and even those trades were executed without any bots and generated no profits. Fuller allegedly diverted $6.2 million for personal expenses including a home purchase, gambling, travel, and vehicles, while routing $5.5 million into Ponzi-like payments to earlier investors.