The U.S. Securities and Exchange Commission has sued Nathan Fuller, identified in the topic as Privvy’s founder, over an alleged $12.3 million crypto investment fraud tied to a purported AI trading bot scheme. According to the SEC complaint, Fuller raised funds from about 150 investors across nine U.S. states and two foreign countries between October 2022 and mid-2024. The regulator alleges Fuller promised returns of 40% to 50% in 30 to 45 days or more than 100% in 21 days, while promoting an AI crypto arbitrage strategy that was not functioning as represented. The SEC also alleges only about 3% of investor money was actually used for crypto trading, while at least $6.2 million was misappropriated. Earlier reporting in the topic stated that about $5.5 million went to Ponzi-like payments to earlier investors, underscoring the SEC’s claim that investor funds were largely misused rather than deployed in legitimate trading.