SEC Sues Nathan Fuller Over Alleged $12.3 Million AI Crypto Trading Fraud
According to the SEC, Privvy founder Nathan Fuller promised 40% to 50% returns within 30 to 45 days or more than 100% in 21 days in an alleged $12.3 million crypto fraud case.
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.
- AI crypto arbitrage scheme: A crypto investment program marketed as using artificial intelligence to exploit price differences across markets for profit.
- Ponzi-like payments: Payments to earlier investors using funds from newer investors, rather than profits from a legitimate business activity.
- trading bots: Automated software programs designed to place trades based on preset rules or algorithms, often marketed as tools for round-the-clock market execution.