SEC Charges Privvy Founder with $12.3 Million Crypto Fraud

The U.S. Securities and Exchange Commission (SEC) has charged Nathan Fuller, founder of Privvy, with orchestrating a cryptocurrency investment fraud involving $12.3 million. According to Odaily, Fuller allegedly misled investors by claiming that his proprietary AI-based robot could automatically scan cryptocurrency trading platforms to exploit price gaps through high-frequency arbitrage. He promised returns of 40% to 50% within 30 to 45 days or over 100% guaranteed returns within 21 days. The SEC stated that only about 3% of the funds were used for cryptocurrency trading, while Fuller allegedly misappropriated at least $6.2 million for personal use and paid approximately $5.5 million to early investors in a manner resembling a Ponzi scheme.