Under Gary Gensler, the SEC treated the crypto industry like a sheriff entering a saloon with his hand on the holster. With Paul Atkins, the air seems less unbreathable for serious businesses. However, the opening is not a rodeo without barriers. When the scam smells of powder, the regulator draws again.
In brief
- The SEC accuses Nathan Fuller of having raised 12.3 million from around 150 American investors.
- The promised returns sometimes reached more than 100% in just 21 days according to the complaint.
- The promised returns sometimes reached more than 100% in just 21 days according to the complaint. The AI bots presented as proprietary would not have worked as Fuller advertised to investors.
- The SEC mentions 6.2 million embezzled and 5.5 million used in Ponzi-type payments.
The SEC dismantles a return promise too good to be clean
The SEC accuses Cypress, Texas, resident Nathan Fuller of raising approximately $12.3 million from 150 investors. According to the complaint filed in the Southern District of Texas, the case extends from October 2022 to mid-2024. Fuller operated through Privvy Investments LLC and under the trading names Privvy Investments and Gateway Digital Investments.
THE case is based on a well-known bait, repainted in the colors of artificial intelligence. Fuller reportedly promised returns of 40% to 50% in 30 to 45 days. Some investors have even heard of guaranteed profits of over 100% in just 21 days.
To make the trap more attractive, he claimed to use proprietary AI bots capable of practicing high-frequency arbitrage on crypto platforms.
The decor was further reinforced by false guarantees. The funds were allegedly presented as backed by a bond, insured by the FDIC and protected by a professional policy. According to the SEC, none of this was true.
Crypto miracle robots would hide an old Ponzi scheme
The SEC says the bots did not work as advertised. Behind the technical jargon, the regulator describes a much more classic mechanism. Fuller allegedly embezzled at least $6.2 million for personal expenses. Around 5.5 million would have been used to pay former investors, in a logic close to a Ponzi.
To maintain the appearance of diligence, Fuller allegedly sent false account statements and fabricated correspondence. This type of montage shows that the word “AI” sometimes becomes a marketing lasso. It captures investors who want to believe in a brilliant, fast and invincible machine.
However, the law remains simple: a false promise, a significant omission or an invented guarantee can give rise to civil liability.
The SEC is seeking permanent injunctions, disgorgement of winnings and financial penalties. The regulator also recalls having already pursued other cases mixing crypto, WhatsApp, fake experts and promises of AI trading.
The figures that load the judicial revolver
- $12.3 million reportedly raised from investors;
- Around 150 people would be affected by the case;
- Promised returns sometimes reached 100% in 21 days;
- 6.2 million would have financed personal expenses;
- 5.5 million would have been used to pay former investors.
In the United States, crypto tracking takes place before the SEC, judges and federal files. In France, the decor has sometimes taken a more brutal turn. Crypto-related kidnappings have led to several arrests, proof that digital money can also leave screens violently.
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