SEC v. Nathan Fuller

Nathan Fuller allegedly raised approximately $12.3 million from about 150 investors based on various misrepresentations and omissions in a crypto asset trading scheme. According to the SEC's complaint, from at least October 2022 through mid-2024, Fuller offered and sold joint-venture interests in a crypto asset trading scheme through his company, Privvy Investments, LLC, and under the assumed business names Privvy Investments and Gateway Digital Investments. As alleged, Fuller falsely promised some investors that their investments would generate returns of more than 40-50% within 30 to 45 days and falsely claimed that investors stood to make profits exceeding 100% in as little as 21 days. Fuller allegedly made various misrepresentations to investors, including that he would use AI-based trading bots to engage in high-frequency arbitrage trading on crypto asset trading platforms, that investor funds were secured by a surety bond, insured by the FDIC, and protected by a professional-liability insurance policy. According to the complaint, Fuller's bots did not function as represented and Fuller misappropriated at least $6.2 million of investor funds for personal expenses, used approximately $5.5 million of investor funds to make Ponzi-like payments, and lulled investors using fake account statements and fabricated correspondence from phony entities. He is charged with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Summary generated from official Securities and Exchange Commission press release