Legal Action Against Nathan Fuller
The Texas resident Nathan Fuller is facing legal action from the U.S. Securities and Exchange Commission (SEC) for allegedly masterminding a fraudulent cryptocurrency investment scheme that duped around 150 investors out of approximately $12.3 million. The SEC’s litigation release, made public on May 29, 2026, outlines how Fuller purportedly ran this operation through Privvy Investments, LLC, and other associated entities such as Gateway Digital Investments, from October 2022 until mid-2024.
Fraudulent Claims and Misappropriation of Funds
According to the SEC, Fuller attracted investors by promoting the supposed capabilities of AI-driven trading technologies, claiming that his so-called proprietary algorithms could generate astonishing returns. He allegedly lured participants with promises of 40% to 50% returns within a mere 30 to 45 days, and even guaranteed profits exceeding 100% within just 21 days. However, the SEC argues that these assertions were deliberate fabrications and that Fuller’s claimed trading systems failed to function as he described.
Investigators assert that instead of successfully trading cryptocurrency, Fuller misappropriated the bulk of the raised funds—over $6.2 million—on personal expenditures and around $5.5 million in payments to earlier investors to maintain an illusion of a successful venture—a hallmark of a Ponzi scheme. To further mislead investors, Fuller allegedly provided falsified account statements and bogus correspondence from non-existent entities, falsely assuring investors that their funds were insured or secured.
SEC Allegations and Legal Remedies
The SEC’s allegations include violations of several key sections of the Securities Act of 1933 and the Securities Exchange Act of 1934, specifically citing Fuller under Sections 5(a), 5(c), and 17(a) of the former and Section 10(b) and Rule 10b-5 of the latter. The regulatory agency is pursuing a range of legal remedies including permanent injunctions against Fuller, recovery of illicit gains, and financial penalties for his actions.
