Lawrence Jengar
Might 30, 2026 12:54
Nathan Fuller allegedly scammed 150 traders with guarantees of 100% returns through AI crypto buying and selling bots. The SEC seeks penalties and funds restoration.
The U.S. Securities and Trade Fee (SEC) has charged Nathan Fuller, a Texas resident, with orchestrating a $12.3 million cryptocurrency fraud. Fuller allegedly lured roughly 150 traders with guarantees of extraordinary returns by way of faux AI-powered buying and selling bots, in accordance with the SEC’s grievance filed on Might 28, 2026, within the U.S. District Courtroom for the Southern District of Texas.
Working by way of Privvy Investments, LLC, and Gateway Digital Investments, Fuller claimed his proprietary AI bots may ship high-frequency arbitrage buying and selling income. He assured returns of 40% to 50% inside 30 to 45 days, with some traders reportedly promised 100% income in simply 21 days. To bolster his credibility, Fuller falsely asserted that investments have been insured by the Federal Deposit Insurance coverage Company (FDIC) and backed by legal responsibility insurance coverage insurance policies. None of those assurances have been actual, the SEC alleges.
As a substitute of deploying investor funds into buying and selling, Fuller misappropriated not less than $6.2 million for private bills and used $5.5 million to make Ponzi-like funds to earlier traders. The SEC additionally accused him of issuing faux account statements and fabricating correspondence from non-existent entities to take care of the ruse.
Crypto, AI, and Fraud: A Rising Concern
This case is a part of a broader pattern of scams exploiting the thrill round synthetic intelligence and cryptocurrency. Final yr, the SEC charged a number of people and entities in a $14 million fraud scheme that equally leaned on AI branding to draw retail traders. Fraudsters have more and more used AI as a advertising and marketing hook, promising algorithm-driven, risk-free income that don’t really exist.
Fuller’s actions additionally underscore the misleading potential of mixing AI claims with crypto arbitrage, an idea that appeals to traders in search of excessive returns in risky markets. Nevertheless, these schemes typically lack transparency, leaving victims with little recourse as soon as funds are misplaced.
SEC Seeks Accountability
On this case, the SEC is pursuing everlasting injunctions, disgorgement of ill-gotten good points, and civil penalties towards Fuller. The company’s enforcement actions have ramped up in recent times, with 95 crypto-related circumstances initiated since fiscal yr 2022, leading to $2.3 billion in penalties. Nevertheless, critics argue that many actions have didn’t ship tangible advantages to harmed traders.
Fuller’s authorized troubles lengthen past the SEC’s grievance. In August 2025, a U.S. Chapter Courtroom denied him a discharge of over $12.5 million in debt tied to the identical fraudulent actions. The court docket discovered that Fuller had hid belongings and made false statements throughout chapter proceedings, additional cementing the severity of his misconduct.
Broader Implications
This case serves as a cautionary story for traders navigating the crypto area. The attract of excessive returns mixed with cutting-edge expertise like AI can typically masks fraudulent schemes. As regulatory scrutiny intensifies, potential traders ought to stay vigilant, conduct due diligence, and confirm claims made by funding platforms. In the meantime, the SEC’s ongoing enforcement actions sign an aggressive stance towards dangerous actors exploiting crypto and AI hype.
The Fuller case will now proceed by way of the court docket system, with implications not only for the defendant but in addition for the broader intersection of crypto, AI, and regulatory oversight.
Picture supply: Shutterstock
