SEC Charges Privvy Founder Over $12.3 Million Crypto Fraud Scheme Using Fake AI Trading Bots

According to an SEC complaint filed Thursday in Houston federal court, Nathan Fuller, founder of Privvy Investments LLC, was charged with operating a $12.3 million crypto fraud scheme between October 2022 and mid-2024. Fuller raised funds from approximately 150 investors across nine U.S. states and two foreign countries by promising proprietary AI-based trading bots would generate returns of 40% to 50% within 30 to 45 days, or guaranteed profits exceeding 100% in as little as 21 days.

The bots contained no AI functionality. Fuller deployed only $380,000 of the $12.3 million raised—roughly 3%—to purchase cryptocurrency, generating no profit. The SEC alleges he misappropriated at least $6.2 million on personal expenses including real estate, gambling, and collectibles, while routing approximately $5.5 million back to earlier investors in Ponzi-like payments.