The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Nathan Fuller, a resident of Texas, accusing him of illegally raising approximately $12.3 million from around 150 investors through a fraudulent 'AI crypto trading robot' scheme.
According to Odaily, the SEC stated that from October 2022 to mid-2024, Fuller sold crypto investment interests under the names Privvy Investments LLC and Gateway Digital Investments. He claimed to use an 'AI high-frequency arbitrage robot' for trading crypto assets, promising investors guaranteed returns of 40% to over 100% within 21 to 45 days.
The regulatory body alleged that Fuller falsely claimed that investment funds were protected by FDIC insurance, surety bonds, and professional liability insurance. In reality, the purported trading robot did not operate as advertised. The SEC accused Fuller of misappropriating at least $6.2 million of investor funds for personal expenses and using approximately $5.5 million from new investors for 'Ponzi-style payments.' He also allegedly misled investors by fabricating account statements and creating fictitious institutional communications.
The SEC has filed the lawsuit in the federal court for the Southern District of Texas, charging Fuller with violations related to securities issuance and anti-fraud laws. The commission is seeking a permanent injunction, disgorgement of ill-gotten gains, and civil penalties.
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