SEC v. Nathan Fuller — U.S. Securities and Exchange Commission Litigation Release No. 26558, dated May 29, 2026.
The SEC charged Nathan Fuller, a Texas resident, for allegedly defrauding approximately 150 investors out of $12.3 million. Fuller falsely promised high returns using AI trading bots, but instead misappropriated funds for personal use and made Ponzi-like payments. The SEC seeks injunctions, disgorgement, and civil penalties.
In Plain English
Imagine someone promised to use super-smart computer programs to make your money grow really fast by trading digital coins. They said your money was safe and would earn a lot, like over 40% in just over a month. But instead of using the special programs, they took a lot of the money for themselves and used other people's money to pay back earlier investors, like a game of financial musical chairs. They also sent fake statements to make it look like everything was fine.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- The Pitch: AI Trading Bots Starting around October 2022, Nathan Fuller began soliciting investors for a crypto asset trading scheme. He claimed he had developed proprietary AI-based trading bots designed for high-frequency arbitrage trading on various crypto platforms.
- The Promises: Guaranteed High Returns Fuller lured investors by falsely promising exceptionally high returns. Some investors were told their investments would yield over 40-50% within 30-45 days, while others were promised guaranteed profits exceeding 100% in as little as 21 days.
- The False Security Blanket To allay investor concerns, Fuller made several misrepresentations about the safety of their funds. He claimed investor funds were secured by a surety bond, insured by the FDIC, and protected by a professional-liability insurance policy.
- Operating Under Assumed Names Fuller conducted this scheme through his company, Privvy Investments, LLC, which he formed in July 2023. Prior to that, and concurrently, he operated under the assumed business names Privvy Investments and Gateway Digital Investments.
- The Reality: Bots Didn't Work Contrary to his claims, Fuller's purported AI trading bots did not function as represented. He did not engage in high-frequency arbitrage trading as promised to investors.
- The Truth About Security Furthermore, the assurances of security were false. Fuller did not have a money-transmitter license, there was no surety bond, and investor funds were not insured or guaranteed by the FDIC or any other entity.
- Misappropriation of Funds Instead of trading, Fuller misappropriated a significant portion of the investor funds. Approximately $6.2 million was used for personal expenses, and about $5.5 million was used to make Ponzi-like payments to earlier investors.
- Lulling Investors with Fake Documents To maintain the illusion of a legitimate operation and keep investors from discovering the truth, Fuller provided fake account statements and fabricated correspondence from phony entities.
The Enforcement Action
On May 28, 2026, the SEC charged Nathan Fuller in the U.S. District Court for the Southern District of Texas with violating securities registration and antifraud provisions. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.
Named in this action: Nathan Fuller.