SEC Charges Texas Man for $12.3M AI Crypto Trading Scheme

The US Securities and Exchange Commission has filed charges against Nathan Fuller of Cypress, Texas, alleging he ran a crypto investment scheme that collected roughly $12.3 million from about 150 investors. The pitch apparently involved AI-powered, high-frequency crypto arbitrage—because nothing says "trust me" quite like a mysterious robot managing your life savings.

According to the complaint, Fuller offered investment opportunities through Privvy Investments and related business names between October 2022 and mid-2024. He allegedly promised returns exceeding 40–50% within weeks and guaranteed profits of more than 100% within 21 days. The SEC claims he misrepresented what his AI trading bots could actually do and falsely assured investors their funds were protected by insurance and bonding arrangements.

Investigators further allege that Fuller diverted at least $6.2 million for personal use, used approximately $5.5 million to pay earlier investors, and distributed fabricated account statements and fake communications to keep the illusion alive. Classic Ponzi mechanics dressed up in AI buzzwords, essentially.

The SEC's lawsuit, filed in federal court in Texas, charges Fuller with securities registration and anti-fraud violations under federal securities laws. The agency is seeking injunctive relief, disgorgement of alleged ill-gotten gains, interest, and monetary penalties.