Federal regulators say a Cypress man turned buzzwords like "AI" and "crypto" into bait, bilking roughly 150 investors out of about $12.3 million with a supposedly cutting-edge trading system that, according to authorities, never existed. The Securities and Exchange Commission has filed a civil complaint accusing Nathan Fuller of using talk of proprietary bots, glossy account statements and bogus insurance protections to convince people in multiple states to hand over their cash. The agency says the scheme ran from at least October 2022 through mid 2024.
SEC Files Suit, Alleges $12.3 Million Fraud
On May 28, the Securities and Exchange Commission filed a complaint in federal court in Houston, alleging Fuller raised about $12.3 million from roughly 150 investors by selling joint venture interests through Privvy Investments LLC and related trade names. According to the SEC, Fuller began soliciting money as early as October 2022 and kept going into mid 2024, leaning on websites, YouTube videos and private messages to reel in investors. The filings say the offerings were never registered with either state or federal securities regulators.
How The Pitch Worked
Fuller told investors he had built proprietary AI based trading bots that carried out high frequency arbitrage and supposedly limited losses through built in stop loss code. According to the complaint, he pitched returns of 40 to 50 percent in 30 to 45 days and, in some cases, more than 100 percent in as little as 21 days, characterizing those eye popping gains as "guaranteed." The SEC's complaint says Fuller backed up the story with a public website and a YouTube video that appeared to show automated trading in action. According to the SEC's complaint, he also misled investors about insurance coverage and licensing.
Where The Money Went
Instead of funding the slick AI trading strategy investors thought they were buying into, the SEC says Fuller used their money for himself and to pay back earlier investors. According to the complaint, as summarized by CoinDesk, about $6.2 million went to personal spending, roughly $5.5 million was funneled into Ponzi style payments to other investors, and only about $380,000, roughly 3 percent, was used to buy crypto that produced no profits.
Legal Exposure
The SEC's complaint accuses Fuller of violating federal registration and antifraud provisions and asks the court to bar him from taking part in future securities offerings. Regulators are seeking permanent injunctions, the return of allegedly unlawful profits with prejudgment interest and civil penalties, according to coverage by InvestmentNews.
Why Texas Investors Should Care
Officials say the Fuller case is a fresh reminder that promises of quick crypto riches are still snaring investors in Texas, where federal data show large crypto related losses. Hoodline recently reported that Texans logged nearly $739 million in losses statewide in 2024. Anyone who invested with Privvy or Gateway is being urged to preserve all documents and consider reporting the matter to regulators or speaking with a securities attorney.
