The SEC has charged Nathan Fuller, a Texas man accused of running a $12.3 million Ponzi scheme disguised as an AI-powered crypto trading operation.
Fuller operated through his company Privvy Investments, LLC, and the assumed business name Gateway Digital Investments. From October 2022 through mid-2024, he allegedly told roughly 150 investors that his AI-driven trading bots could deliver over 100% returns in as little as 21 days-with low risk.
To back his claims, Fuller fabricated a money transmitter license and FDIC insurance, and produced fake performance statements showing 334% returns. In reality, only about $380,000 of the $12.3 million raised ever touched a crypto exchange. No profits were generated.
More than half the funds went to Fuller's personal use; the rest was used for Ponzi-like payouts to earlier investors. During a 2025 bankruptcy proceeding, Fuller reportedly admitted to operating a Ponzi scheme. The SEC seeks permanent injunctive relief, disgorgement, and civil penalties.
The case highlights a stark lesson: any investment promising 100% returns in 21 days-with low risk-is almost certainly a fraud. Regulatory credentials like money transmitter licenses and FDIC insurance can be verified, and they do not apply to crypto trading ventures.