The US SEC charged Texas resident Nathan Fuller over an alleged crypto fraud scheme. The agency said the operation garnered approximately $12.3 million from nearly 150 investors. The case involves AI trading claims and promised crypto returns.
According to the SEC report, Fuller is a resident of Cypress, Texas. He allegedly offered and sold investment interests through Privvy Investments LLC. The company was also known as Privvy Investments and Gateway Digital Investments.
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SEC Details Alleged AI Crypto Trading Scheme
The SEC brought the action on May 28, 2026. The lawsuit was brought in the U.S. District Court in the Southern District of Texas. The alleged conduct was allegedly from October 2022 through mid-2024, regulators said.
According to the complaint, Fuller marketed the business as a crypto trading program. He was accused of using proprietary AI technology. The SEC stated that the crypto fraud case is focused on the trading claims.
The regulator said Fuller promoted high-frequency arbitrage across digital asset markets. The investors were promised regular returns from the system. The SEC stated that those claims were false or misleading.
Some investors were offered between 40% and 50% returns. Those returns were claimed to be available in 30-45 days. Some were even promised to make over 100% in 21 days.
The SEC said Fuller used social media to attract investors. He also allegedly used referral incentives to attract additional investors. Those efforts contributed to the growth of the purported crypto fraud ring.
Regulators stated that Fuller made false claims to alleviate investors’ concerns about safety. He allegedly claimed the business held a Texas money-transmitter license. The SEC said that claim was not true.
SEC Alleges Fake Protections and Misused Investor Funds
Fuller also reportedly asserted that investor funds were protected from outside risks. These included surety bonds, professional liability insurance, and FDIC backing. None of those protections were applicable to the operation, the SEC said.
The trading system was not found to be working as described, the complaint stated. The AI bots either did not exist or failed to operate as promoted. Regulators said the statements about strategy and risk controls were materially false.
The SEC accused Fuller of misusing investor money. It said at least $6.2 million was used for personal expenses. The agency linked that alleged misuse to the crypto fraud complaint.
The regulators also claimed approximately $5.5 million was paid to previous investors. Those payments were Ponzi-like payments, according to the SEC. It stated that the payments contributed to giving the impression of a viable company.
According to the complaint, Fuller gave investors fake account statements. He also allegedly sent bogus letters from non-existent agencies. Those records were used to “hide” the alleged crypto fraud from investors, the SEC said.
The documents allegedly showed successful trading activity. They also reassured investors that their funds remained safe and profitable. The SEC stated that Fuller used them to “delay the suspicion and extend the scheme.
The complaint says investors were misled about returns, protections, and trading activity. The SEC is seeking court action against the alleged violations. The crypto fraud case will now proceed in federal court.
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