Audit log

Every state-changing event for Nathan Fuller / Privvy Investments — SEC $12.3M Fake AI-Bot Fraud: moderation decisions on community submissions, plus corrections and updates from the news pipeline. URL-based decisions are designed to carry three independent witnesses — the original source, an Internet Archive snapshot, and a Solana memo signed by our publicly-disclosed publisher key. Archive coverage is still being backfilled, so each decision below reports its own snapshot status rather than assuming one exists.

1. #1publishby system:backfill

   2026-10-08 00:04:35Z
   Score: ? → ? (no score change)
   anchorfailed

   chain

   ●—

   hash

   8GfoNQ3z7XBr…uJdHpMyAcopysha256 → base58

   verifying row…

   canonical bytes (11372 B) ▸

   {"actor":"system:backfill","investigation_id":"1136f9a6-4647-484e-ad07-cb42691bff4c","kind":"publish","page_slug":"nathan-fuller-privvy-investments-sec-12-3m-fake-ai-bot-fraud","published_at":"2026-10-08T00:04:35.561Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Nathan Fuller / Privvy Investments — SEC $12.3M Fake AI-Bot Fraud","sections":[{"content":"The SEC alleges that from at least October 2022 through mid-2024, Nathan Fuller offered and sold joint-venture interests through Privvy Investments, LLC, and under the assumed business names Privvy Investments and Gateway Digital Investments, raising approximately $12.3 million from roughly 150 investors located in nine U.S. states and two foreign countries. Fuller allegedly told investors that proprietary AI-based bots autonomously scanned crypto trading platforms to capture small price discrepancies through high-frequency arbitrage, promising returns of 40% to 50% within 30 to 45 days, with some investors allegedly told they could earn guaranteed profits exceeding 100% in as little as 21 days. The complaint alleges that, to the extent the trading code ran at all, it contained no AI or stop-loss functionality as represented, and that Fuller used only about $380,000 — roughly 3% of funds raised — to actually purchase crypto, generating no profit. The SEC complaint charges Fuller with violating the registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933, the antifraud provisions of Section 17(a) of the Securities Act, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and an officer-and-director or securities-offering bar. These are allegations in a civil complaint and have not been proven in court.","heading":"SEC Civil Fraud Complaint","severity":"critical","sources":[{"credibility":2,"name":"SEC sues Privvy founder over $12.3 million crypto scheme as AI 'bots' turn out to be neither — The Block","type":"news_article","url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"},{"credibility":2,"name":"SEC Alleges Crypto Asset Fraud Scheme Involving \"Proprietary AI-Based Trading Bots\"","type":"news_article","url":"https://securitiesdocket.beehiiv.com/p/sec-alleges-crypto-asset-fraud-scheme-involving-proprietary-ai-based-trading-bots"},{"credibility":2,"name":"SEC Charges Texas Man in $12.3M Crypto Scam Involving Fake AI Bots","type":"news_article","url":"https://app.sentisense.ai/stories/sec-charges-texas-man-in-12.3m-crypto-scam-involving-fake-ai-bots-05312026"}]},{"content":"The SEC alleges Fuller misappropriated at least $6.2 million of investor funds for personal use, including approximately $1 million spent on a house, along with gambling, trading cards, travel, and a Jeep. The complaint further alleges that approximately $5.5 million of investor funds were paid back to earlier investors in a manner the SEC characterizes as Ponzi-like, meaning payments to earlier participants were funded by new investor inflows rather than genuine trading profits, since the underlying trading activity generated no profit.","heading":"Alleged Misappropriation and Ponzi-Style Payments","severity":"critical","sources":[{"credibility":2,"name":"SEC sues Privvy founder over $12.3 million crypto scheme as AI 'bots' turn out to be neither — The Block","type":"news_article","url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"}]},{"content":"According to reporting on the SEC complaint, Fuller allegedly told investors that their funds were secured by a surety bond, insured by the FDIC, and protected by a professional liability insurance policy, none of which the SEC alleges was true. Reporting further states that Fuller claimed to hold a Texas money-transmitter license and allegedly invented an insurer, described in reporting as \"Texas Guarantors & Securities,\" and altered a real but short-lived insurance certificate to falsely indicate $5 million in coverage that the underlying policy actually excluded. When investors attempted to withdraw funds around June 2024, Fuller allegedly created a fictitious auditing firm, described in reporting as \"Blockchain Audit Solutions,\" and allegedly used an AI chatbot tool to draft a letter demanding additional \"KYC verification\" before releasing any payout, a tactic reporting characterizes as a stalling or lulling technique aimed at delaying redemptions.","heading":"Alleged False Claims of Insurance and Regulatory Coverage","severity":"high","sources":[{"credibility":2,"name":"SEC sues Privvy founder over $12.3 million crypto scheme as AI 'bots' turn out to be neither — The Block","type":"news_article","url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"}]},{"content":"Separately from the SEC's civil action, reporting citing the U.S. Department of Justice states that investors previously sued Fuller in Texas state court and a receiver seized his assets, after which Fuller filed for Chapter 7 bankruptcy in October 2024. In September 2025, a Texas bankruptcy court denied Fuller a discharge of more than $12.5 million in debt. Reporting states that in those bankruptcy proceedings Fuller admitted to operating Privvy Investments as a Ponzi scheme and to fabricating documents. The SEC's civil complaint, filed about nine months after the bankruptcy discharge denial, does not itself reference the bankruptcy court's findings or the Ponzi admission, according to reporting.","heading":"Related Bankruptcy Proceeding and Ponzi Admission","severity":"critical","sources":[{"credibility":2,"name":"SEC sues Privvy founder over $12.3 million crypto scheme as AI 'bots' turn out to be neither — The Block","type":"news_article","url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"}]},{"content":"Reporting states that the SEC's case was assisted by the agency's Cyber and Emerging Technologies Unit. Coverage of the case draws comparisons to other SEC crypto-fraud enforcement actions involving fabricated AI claims, including the agency's prior case against PGI Global founder Ramil Palafox, described as a roughly $198 million scheme, and a separate SEC action described in reporting as involving a $14 million scam tied to fake crypto platforms and so-called \"AI investment clubs.\" These comparisons are provided as background context from news coverage and are not themselves allegations against Fuller.","heading":"Investigative Context","severity":"low","sources":[{"credibility":2,"name":"SEC sues Privvy founder over $12.3 million crypto scheme as AI 'bots' turn out to be neither — The Block","type":"news_article","url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"}]}],"sources_used":[{"credibility":2,"name":"SEC sues Privvy founder over $12.3 million crypto scheme as AI 'bots' turn out to be neither — The Block","type":"news_article","url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"},{"credibility":2,"name":"SEC Alleges Crypto Asset Fraud Scheme Involving \"Proprietary AI-Based Trading Bots\"","type":"news_article","url":"https://securitiesdocket.beehiiv.com/p/sec-alleges-crypto-asset-fraud-scheme-involving-proprietary-ai-based-trading-bots"},{"credibility":2,"name":"SEC Charges Texas Man in $12.3M Crypto Scam Involving Fake AI Bots","type":"news_article","url":"https://app.sentisense.ai/stories/sec-charges-texas-man-in-12.3m-crypto-scam-involving-fake-ai-bots-05312026"},{"credibility":2,"name":"SEC Charges Texas Resident with Orchestrating $12.3M Crypto Investment Fraud Involving Fabricated AI Trading Technology — Crowdfund Insider","type":"news_article","url":"https://www.crowdfundinsider.com/?p=282764"},{"credibility":2,"name":"SEC charges Texas man with $12.3M crypto fraud, fake AI trading bots — Cointelegraph","type":"news_article","url":"https://cointelegraph.com/news/sec-charges-texas-man-with-123m-crypto-fraud-fake-ai-trading-bots"}],"summary":"On May 28, 2026, the U.S. Securities and Exchange Commission filed a civil fraud complaint in the U.S. District Court for the Southern District of Texas against Nathan Fuller, a Cypress, Texas resident and founder of Privvy Investments LLC, alleging he raised approximately $12.3 million from roughly 150 investors by falsely claiming proprietary AI-powered trading bots conducted high-frequency crypto arbitrage. The SEC alleges only about 3% of investor funds were ever used to buy crypto, that Fuller misappropriated millions for personal expenses, and that he ran a Ponzi-like scheme using new investor money to pay earlier investors. This page covers the SEC enforcement action and related bankruptcy findings specifically; it does not restate the trust score on the existing Nathan Fuller / Privvy Investments entity page (/nathan-fuller-privvy-investments).","timeline":[{"date":"2022-10","event":"Alleged start of Fuller's fundraising for Privvy Investments / Gateway Digital Investments, according to the SEC complaint.","source":"The Block","source_url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"},{"date":"2024-06","event":"Investors allegedly began attempting to withdraw funds; Fuller allegedly created a fictitious audit firm and used an AI tool to draft a letter demanding further verification before payout.","source":"The Block","source_url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"},{"date":"2024-10","event":"Fuller filed for Chapter 7 bankruptcy, following a Texas state court lawsuit by investors and asset seizure by a receiver, according to DOJ-sourced reporting.","source":"The Block","source_url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"},{"date":"2025-09","event":"A Texas bankruptcy court denied Fuller a discharge of more than $12.5 million in debt; Fuller reportedly admitted to running Privvy as a Ponzi scheme and fabricating documents.","source":"The Block","source_url":"https://www.theblock.co/post/403118/sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither"},{"date":"2026-05-28","date_evidence":"The SEC sued Nathan Fuller of Cypress, Texas, over the Privvy Investments scheme. On May 28, 2026, the Securities and Exchange Commission charged Nathan Fuller, alleging he raised about $12.3 million from roughly 150 investors.","event":"The SEC filed a civil fraud complaint against Nathan Fuller in the U.S. District Court for the Southern District of Texas, alleging a $12.3 million fake AI-trading-bot scheme.","source":"News coverage summarizing SEC complaint","source_url":"https://www.theblock.co/news/regulation/2026-05-30-sec-sues-privvy-founder-over-12-3-million-crypto-scheme-as-ai-bots-turn-out-to-be-neither-403118"}]},"v":1}

   Verify offline (run on your own machine)

   python -m src.verify_decision 3e3efa4b-79e0-4082-94f9-a652f6551d12copy