Who is Nathan Fuller? Texas man accused of running $12.3 million AI crypto scam

Nathan Fuller, a resident of Cypress, Texas, is accused by the U.S. Securities and Exchange Commission (SEC) of defrauding investors out of $12.3 million through Privvy Investments LLC and Gateway Digital Investments. From October 2022 to mid-2024, Fuller allegedly promised high returns—40% to 50% in 30 to 45 days—using AI-driven trading bots that regulators say did not exist. The SEC complaint, filed in federal court in Houston, states the software lacked AI capabilities and basic risk-management tools, with only $380,000 of investor funds actually used for cryptocurrency purchases, yielding no profits. Instead, the SEC alleges Fuller misappropriated at least $6.2 million for personal expenses, including a $1 million home, gambling, trading cards, travel, and a Jeep. An additional $5.5 million from new investors was used to pay earlier investors, creating a Ponzi-like structure to maintain the illusion of legitimacy. To lure investors, Fuller falsely claimed his business held a Texas money-transmitter license, FDIC insurance, and a $5 million professional-liability policy. The SEC found these claims untrue, noting Fuller created a fake insurance company, Texas Guarantors & Securities, and altered a legitimate biBERK insurance certificate to appear as if it covered Privvy Investments. These deceptions helped sustain investor trust despite growing concerns over withdrawals and returns. As withdrawals surged in June 2024, the SEC complaint suggests Fuller allegedly used AI tools like ChatGPT to generate fake documentation, though details remain incomplete. The case highlights broader risks in crypto investments, where unregulated schemes exploit AI buzzwords to mislead investors.