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A Texas man allegedly convinced 150 people that his AI-powered trading bots could double their money in three weeks. In reality, roughly $380,000 of the $12.3 million he raised ever touched a crypto exchange.
The Securities and Exchange Commission filed a complaint against Nathan Fuller in the US District Court for the Southern District of Texas, accusing him of running a textbook Ponzi scheme disguised as a cutting-edge AI trading operation.
The pitch vs. the reality
Fuller operated through his company Privvy Investments, LLC, incorporated in Wyoming in July 2023, and under the assumed business name Gateway Digital Investments. The scheme ran from at least October 2022 through mid-2024.
Fuller told investors his proprietary AI-driven trading bots could deliver returns exceeding 100% in as little as 21 days, or over 50% within 30 to 45 days. He framed the investments as low-risk, citing a supposed 3% stop-loss feature that would protect against downside.
To bolster credibility, Fuller fabricated investment credentials including a nonexistent money transmitter license and FDIC insurance. He also produced fictitious performance statements showing returns exceeding 334%.
Of the $12.3 million raised from approximately 150 investors, only about $380,000, roughly 3% of total funds, was actually used to purchase crypto assets. No profits were generated from those purchases.
More than half of the raised funds were allegedly misappropriated for Fuller’s personal use. The remaining money went toward Ponzi-like payouts to earlier investors.
How the scheme unraveled
Fuller solicited investors through a combination of word-of-mouth referrals, a public website, and social media campaigns. He promoted what he called “joint-venture opportunities” in a supposed crypto asset trading venture.
An associated bankruptcy proceeding in 2025 proved particularly damning. During those proceedings, Fuller reportedly admitted to operating a Ponzi scheme. The bankruptcy court denied his discharge due to the fraudulent operations of Privvy Investments, LLC.
The SEC is now pursuing permanent injunctive relief against Fuller, along with disgorgement of profits and civil penalties. The case remains in its early complaint phase.
What this means for investors
Any investment promising 100% returns in 21 days with “low risk” is, almost without exception, lying. A money transmitter license can be checked. FDIC insurance applies to bank deposits, not crypto trading ventures.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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