SEC sues Texas man for $12.3 million crypto fraud scheme involving fake AI trading bots
By
Francisco Rodrigues, AI Boost
5h ago· 3 min readenNews
80/100
Golden Brown
Bagelometer↗
Baker's choice. Dense with flavour, light on filler.
Score80TypenewsSentimentvery negative
Summary
The SEC has sued Texas resident Nathan Fuller for allegedly raising $12.3 million from roughly 150 investors through a fraudulent crypto investment scheme. Fuller claimed to use AI-powered trading bots and guaranteed returns, but instead diverted $6.2 million for personal use (including luxury cars and jewelry) and $5.5 million for Ponzi-like payments to earlier investors. Only about 3% of the funds were actually used for crypto trading. The scheme operated through Privvy Investments LLC and Gateway Digital Investments.
Key quotes
· 3 pulledThe SEC says he sold passive joint-venture interests in a purported crypto arbitrage tra
Fuller allegedly diverted $6.2 million for personal use and $5.5M for Ponzi-like payments
only 3% of funds went to crypto trading
Fuller allegedly diverted $6.2 million for personal use and $5.5M for Ponzi-like payments; only 3% of funds went to crypto trading.
