US SEC Files Lawsuit Against Privvy Founder Over Alleged $12.3 Million Cryptocurrency Scam

On May 31, according to The Block, the U.S. SEC filed a lawsuit in a Houston federal court accusing Nathan Fuller, a resident of Cypress, Texas, of operating a cryptocurrency scam project involving $12.3 million, which defrauded investors using a fake artificial intelligence trading bot. Nathan Fuller told investors that his proprietary AI-based bot could automatically scan cryptocurrency trading platforms to capture tiny price gaps through high-frequency arbitrage, promising returns of 40% to 50% within 30 to 45 days. Some investors were even told they could receive guaranteed returns of over 100% within 21 days. The SEC stated that Nathan Fuller, founder and sole member of Privvy Investments LLC, raised these funds from approximately 150 investors across nine states and two foreign countries between October 2022 and mid-2024. He also operated under the alias "Gateway Digital Investments." It is alleged that only about 3% of the funds were actually used for cryptocurrency trading, while Fuller himself pocketed at least $6.2 million and paid approximately $5.5 million to early investors in a manner similar to a Ponzi scheme.