Texas Resident Denied Bankruptcy Discharge
A Texas resident who was the mastermind behind a cryptocurrency Ponzi scheme has been denied the possibility of discharging over $12.5 million in debts through bankruptcy after being found guilty of deceptive practices. Nathan Fuller, the owner of Privvy Investments LLC, engaged in significant concealment of assets and deception throughout his bankruptcy proceedings, prompting the U.S. Trustee Program (USTP) to take legal action against him.
Bankruptcy Court Ruling
On August 1, the Southern District of Texas Bankruptcy Court issued a default ruling against Fuller, who had filed for Chapter 7 bankruptcy protection in October 2024. His bankruptcy case followed legal troubles stemming from a lawsuit initiated by investors seeking restitution from Fuller, which resulted in a court-appointed receiver managing his assets.
Misappropriation of Investor Capital
Evidence presented during the proceedings indicated that Fuller had misappropriated investor capital for personal luxuries, including high-end goods, gambling, and purchasing a near $1 million home for his ex-wife — a business partner with whom he was cohabiting. Kevin Epstein, the U.S. Trustee for Region 7, emphasized the seriousness of the charges against Fuller, stating:
“Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy.”
He further highlighted the USTP’s commitment to safeguarding the integrity of the bankruptcy process against dishonest actors.
Investigation Findings
During the investigation, it emerged that Fuller had made substantial attempts to hide assets and provided false information under oath about both his personal bankruptcy and the bankruptcy of his investment firm, Privvy. Following his admission of running a Ponzi scheme and tampering with documents, Fuller was held in civil contempt for disregarding court orders. Despite these admissions, he failed to respond to the accusations presented by the USTP, leading to the court’s default judgment in favor of the USTP.
Consequences and USTP’s Role
Consequently, Fuller remains accountable for his debts, with creditors allowed to pursue collection efforts against him. The USTP, which operates from 88 sites across the nation with its headquarters in Washington, D.C., aims to enhance the effectiveness and integrity of the bankruptcy system for the benefit of debtors, creditors, and the public at large. To learn more about the USTP, visit their official website at www.justice.gov/ust.
