complaint<\/a> filed in the U.S. District Court for the Southern District of Texas, Fuller operated through Privvy Investments LLC and the assumed business names Privvy Investments and Gateway Digital Investments.<\/p>\nThe SEC says he sold passive joint-venture interests in a purported crypto arbitrage trading operation from at least October 2022 through mid-2024.<\/p>\n
The agency claims that Fuller told investors that proprietary AI-based trading bots could scan crypto markets, execute high-frequency arbitrage trades and limit losses through stop-loss coding.<\/p>\n
The complaint alleges investors were promised returns of 40% to 50% within 30 to 45 days and, in some cases, exceeding 100% in less than a month.<\/p>\n
The SEC says those representations were false. According to the complaint, only about $380,000, or roughly 3% of investor funds, was used to purchase cryptocurrency without the involvement of bots. The agency says those trades were conducted without the advertised bots and generated no profits.<\/p>\n
Fuller, instead, allegedly misappropriated at least $6.2 million for personal expenses, including the purchase of a home, gambling, travel and vehicles, while using about $5.5 million to make \u201cPonzi-like payments\u201d to investors.<\/p>\n
As withdrawal concerns grew, the complaint says, Fuller created fabricated account statements showing gains, referenced fictitious entities, and used artificial intelligence to generate a letter from a purported auditing firm claiming investor accounts were under review and would later be liquidated into a trust.<\/p>\n
The SEC charged Fuller with violating the registration and antifraud provisions of federal securities laws and is seeking permanent injunctions, disgorgement, civil penalties and a ban on participating in securities offerings.<\/p>\n
The case follows a separate bankruptcy proceeding in which the Justice Department said Fuller was denied discharge of more than $12.5 million in debt after admitting he operated Privvy as a Ponzi scheme and fabricated documentation, according to court records cited by the DOJ.<\/p>\n","protected":false},"excerpt":{"rendered":"The U.S. Securities and Exchange Commission (SEC) has sued Texas resident Nathan Fuller, alleging he raised about $12.3…\n","protected":false},"author":2,"featured_media":510958,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,289,290,18,19,17,28529,82],"class_list":["post-510957","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-eire","tag-ie","tag-ireland","tag-sec","tag-technology"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116666067280461321","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/510957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=510957"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/510957\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/510958"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=510957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=510957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=510957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}