SEC Sues Texas Man Over Alleged $12.3 Million Crypto Fraud Using Fake AI Trading Bots

From October 2022 through mid-2024, Nathan Fuller solicited investments in pooled crypto-asset ventures through Privvy Investments and Gateway Digital Investments. He claimed proprietary AI bots could conduct high-frequency arbitrage and even guaranteed returns of more than 100% within 21 days. The case highlights the risk of investment fraud combining AI hype, crypto assets and promises of high returns.

The U.S. Securities and Exchange Commission sued Fuller in federal court in the Southern District of Texas on May 28, 2026, alleging that he raised $12.3 million from about 150 investors. Only about $380,000, or roughly 3%, was used for cryptocurrency trading, while at least $6.2 million was allegedly diverted to personal expenses and about $5.5 million was used for Ponzi-like payments. Fuller also falsely claimed that the funds were covered by FDIC insurance and professional liability insurance.