The U.S. Securities and Exchange Commission (SEC) has charged Texas resident Nathan Fuller with orchestrating a cryptocurrency fraud scheme that allegedly raised $12.3 million from nearly 150 investors. Fuller promoted an AI-powered trading program through Privvy Investments LLC, promising returns of over 100% within 21 days. The SEC alleges investor funds were misused for personal expenses and Ponzi-like payments.
The SEC charged Cypress, Texas resident Nathan Fuller over an alleged crypto fraud scheme. The agency said the operation garnered approximately $12.3 million from nearly 150 investors.
According to the complaint filed on May 28, 2026, Fuller offered investment interests through Privvy Investments LLC. He marketed the business as a crypto trading program using proprietary AI technology from October 2022 through mid-2024.
The regulator said Fuller promoted high-frequency arbitrage across digital asset markets. Investors were promised returns between 40% and 50% in 30-45 days, with some offers exceeding 100% in just 21 days.
Fuller allegedly used social media and referral incentives to attract investors. He also reportedly claimed the business held a Texas money-transmitter license and that funds were protected by surety bonds and FDIC backing, which the SEC stated was untrue.
The trading system was not found to be working as described, with the AI bots either nonexistent or failing. The SEC accused Fuller of misusing at least $6.2 million of investor money for personal expenses.
Regulators also claimed approximately $5.5 million was paid to previous investors in Ponzi-like payments. Fuller allegedly gave investors fake account statements and bogus letters from non-existent agencies to hide the fraud.
The documents allegedly showed successful trading activity, according to the SEC. They were used to reassure investors that their funds remained safe and profitable, thereby delaying suspicion and extending the scheme.
The complaint says investors were misled about returns, protections, and trading activity. The SEC is seeking court action against the alleged violations as the crypto fraud case proceeds in federal court.
