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{"actor":"system:backfill","investigation_id":"e8e46fbb-6671-420f-8e61-3a25f5fcdc19","kind":"publish","page_slug":"nathan-fuller-privvy-investments-gateway-digital-investments","published_at":"2026-09-23T17:14:10.079Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Nathan Fuller (Privvy Investments / Gateway Digital Investments)","sections":[{"content":"On May 28, 2026, the U.S. Securities and Exchange Commission filed a civil complaint against Nathan Fuller in the U.S. District Court for the Southern District of Texas (Case No. 4:26-cv-04237). The SEC alleges that Fuller, operating through Privvy Investments LLC and the assumed business names Privvy Investments and Gateway Digital Investments, raised approximately $12.3 million from roughly 150 investors across nine U.S. states and two foreign countries between at least October 2022 and mid-2024. The complaint charges Fuller with violating the registration and antifraud provisions of federal securities laws. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and a ban on Fuller from participating in future securities offerings. As of the date of this report, the civil case remains at the complaint stage; no judgment on the merits has been entered in the SEC action.","heading":"Regulatory Action — SEC Civil Complaint (May 2026)","severity":"critical","sources":[{"credibility":1,"name":"SEC Litigation Release LR-26558 — Nathan Fuller","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26558"},{"credibility":1,"name":"SEC Complaint — Case 4:26-cv-04237 (S.D. Tex.)","type":"court_filing","url":"https://www.sec.gov/files/litigation/complaints/2026/complaint-fuller.pdf"},{"credibility":2,"name":"Securities Docket: SEC Charges Texas Resident in Alleged Multi-Million Dollar Crypto Asset Fraud Scheme","type":"news_article","url":"https://www.securitiesdocket.com/2026/06/01/sec-charges-texas-resident-in-alleged-multi-million-dollar-crypto-asset-fraud-scheme/"}]},{"content":"According to the SEC complaint, Fuller told prospective investors that he operated proprietary AI-based trading bots that would conduct high-frequency arbitrage trading across cryptocurrency platforms. The complaint states that 'Fuller's bots did not function as represented.' Fuller allegedly promised some investors guaranteed returns of 40 to 50 percent within 30 to 45 days, and told others they could earn profits exceeding 100 percent in as little as 21 days, with losses capped at 3 percent by built-in stop-loss code. Fuller further allegedly falsely represented that investor funds were secured by a surety bond, covered by FDIC insurance, and protected by professional liability insurance — all of which the SEC alleges were untrue. Fuller also allegedly claimed to hold a Texas money-transmitter license. Of the approximately $12.3 million raised, the SEC alleges only roughly $380,000 (approximately 3 percent) was ever used to purchase cryptocurrency.","heading":"Alleged Scheme Mechanics — Fake AI Trading Bots and Guaranteed Returns","severity":"critical","sources":[{"credibility":1,"name":"SEC Complaint — Case 4:26-cv-04237 (S.D. Tex.)","type":"court_filing","url":"https://www.sec.gov/files/litigation/complaints/2026/complaint-fuller.pdf"},{"credibility":2,"name":"CoinTelegraph: SEC Charges Texas Man With $12.3M Crypto Fraud Using Fake AI Trading Bots","type":"news_article","url":"https://cointelegraph.com/news/sec-charges-texas-man-with-123m-crypto-fraud-fake-ai-trading-bots"},{"credibility":2,"name":"investorclaims.com: Nathan Fuller SEC AI Crypto Trading Bot Fraud","type":"news_article","url":"https://investorclaims.com/blog/nathan-fuller-sec-ai-crypto-trading-bot-fraud/"}]},{"content":"The SEC alleges that of the approximately $12.3 million raised from investors, Fuller diverted at least $6.2 million to personal use and used approximately $5.5 million to make Ponzi-like payments to earlier investors. Personal expenditures alleged by the SEC and confirmed through Fuller's bankruptcy proceedings include the purchase of a home, casino gambling, travel, and vehicles. Bankruptcy proceedings later established that Fuller spent a portion of misappropriated funds on luxury goods, gambling trips, and a nearly $1 million residence purchased for his ex-wife, who was also involved in the business.","heading":"Alleged Misappropriation of Investor Funds","severity":"critical","sources":[{"credibility":1,"name":"SEC Complaint — Case 4:26-cv-04237 (S.D. Tex.)","type":"court_filing","url":"https://www.sec.gov/files/litigation/complaints/2026/complaint-fuller.pdf"},{"credibility":1,"name":"DOJ Office of Public Affairs: Debtor Who Led Crypto Investment Scheme Denied Bankruptcy Discharge","type":"regulatory","url":"https://www.justice.gov/opa/pr/debtor-who-led-crypto-investment-scheme-denied-bankruptcy-discharge"},{"credibility":2,"name":"Decrypt: US Trustee Calls Out 'Dishonest Debtor' in $12.5M Crypto Bankruptcy Case","type":"news_article","url":"https://decrypt.co/338920/us-trustee-dishonest-debtor-12-5m-crypto-bankruptcy-case"}]},{"content":"As investor withdrawal requests increased, the SEC alleges Fuller sent fabricated account statements showing fictitious gains. Fuller allegedly also referenced fictitious third-party entities to simulate legitimacy. Additionally, the SEC alleges Fuller used artificial intelligence to generate a letter purportedly from an auditing firm, falsely claiming that investor accounts were under review and would later be liquidated into a trust. These communications are alleged to have been designed to suppress or delay legitimate withdrawal demands.","heading":"Fabricated Documentation and AI-Generated Deception","severity":"critical","sources":[{"credibility":1,"name":"SEC Litigation Release LR-26558 — Nathan Fuller","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26558"},{"credibility":2,"name":"CoinDesk: SEC Sues Texas Man Over $12.3 Million Alleged Crypto Scheme Built on Fake AI Trading Bots","type":"news_article","url":"https://www.coindesk.com/business/2026/05/30/sec-sues-texas-man-over-usd12-3-million-alleged-crypto-scheme-built-on-fake-ai-trading-bots"},{"credibility":2,"name":"Securities Docket: SEC Charges Texas Resident in Alleged Multi-Million Dollar Crypto Asset Fraud Scheme","type":"news_article","url":"https://www.securitiesdocket.com/2026/06/01/sec-charges-texas-resident-in-alleged-multi-million-dollar-crypto-asset-fraud-scheme/"}]},{"content":"Following the appointment of a receiver in a Texas state court lawsuit brought by investors, Fuller filed for Chapter 7 bankruptcy in October 2024. In the bankruptcy proceedings, Fuller admitted that he had operated Privvy Investments as a Ponzi scheme and that he had fabricated documentation to advance the fraud. He was held in civil contempt for failing to comply with court orders. Fuller further admitted to providing false testimony and falsifying bankruptcy documents to obstruct the chapter 7 trustee appointed to administer his personal and company bankruptcy cases. On August 1, 2025, the U.S. Bankruptcy Court for the Southern District of Texas entered a default judgment denying Fuller's discharge of more than $12.5 million in unsecured debts listed in his bankruptcy schedules. Fuller remains personally liable for those debts, and creditors may continue collection efforts. U.S. Trustee Kevin Epstein stated: 'Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy.' Note: the admissions in the bankruptcy proceeding are Fuller's own statements made in that forum; they are not a criminal conviction or final civil judgment in the SEC action.","heading":"Bankruptcy Proceedings and Debt Discharge Denial","severity":"critical","sources":[{"credibility":1,"name":"DOJ Office of Public Affairs: Debtor Who Led Crypto Investment Scheme Denied Bankruptcy Discharge","type":"regulatory","url":"https://www.justice.gov/opa/pr/debtor-who-led-crypto-investment-scheme-denied-bankruptcy-discharge"},{"credibility":2,"name":"Decrypt: US Trustee Calls Out 'Dishonest Debtor' in $12.5M Crypto Bankruptcy Case","type":"news_article","url":"https://decrypt.co/338920/us-trustee-dishonest-debtor-12-5m-crypto-bankruptcy-case"},{"credibility":2,"name":"Yahoo Finance: US Trustee Calls Out 'Dishonest Debtor' in $12.5M Crypto Bankruptcy Case","type":"news_article","url":"https://finance.yahoo.com/news/us-trustee-calls-dishonest-debtor-054021552.html"}]},{"content":"Privvy Investments LLC was the primary corporate entity through which Fuller operated. Gateway Digital Investments was an assumed business name used interchangeably in investor-facing materials. Both names were controlled by Fuller. The scheme operated from at least October 2022 through mid-2024. Fuller is identified in court filings as a resident of Cypress, Texas. His ex-wife was also involved in the business, according to bankruptcy court findings, though she has not been named as a defendant in the SEC civil action based on available public records.","heading":"Entity Background — Privvy Investments LLC and Gateway Digital Investments","severity":"high","sources":[{"credibility":1,"name":"SEC Complaint — Case 4:26-cv-04237 (S.D. Tex.)","type":"court_filing","url":"https://www.sec.gov/files/litigation/complaints/2026/complaint-fuller.pdf"},{"credibility":1,"name":"DOJ Office of Public Affairs: Debtor Who Led Crypto Investment Scheme Denied Bankruptcy Discharge","type":"regulatory","url":"https://www.justice.gov/opa/pr/debtor-who-led-crypto-investment-scheme-denied-bankruptcy-discharge"}]},{"content":"Approximately 150 investors across nine U.S. states and two foreign countries are identified in the SEC complaint as participants in the scheme. The total amount raised was approximately $12.3 million. Given that only roughly $380,000 was directed toward actual cryptocurrency purchases, and the remainder was either misappropriated or recycled as payments to earlier investors, recovery prospects for the investor pool are uncertain. The bankruptcy discharge denial preserves creditor claims but does not itself create recoverable assets if Fuller has dissipated the funds.","heading":"Investor Impact","severity":"high","sources":[{"credibility":1,"name":"SEC Litigation Release LR-26558 — Nathan Fuller","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26558"},{"credibility":2,"name":"investorclaims.com: Nathan Fuller SEC AI Crypto Trading Bot Fraud","type":"news_article","url":"https://investorclaims.com/blog/nathan-fuller-sec-ai-crypto-trading-bot-fraud/"}]}],"sources_used":[{"credibility":1,"name":"SEC Litigation Release LR-26558 — Nathan Fuller","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26558"},{"credibility":1,"name":"SEC Complaint — Case 4:26-cv-04237 (S.D. Tex.)","type":"court_filing","url":"https://www.sec.gov/files/litigation/complaints/2026/complaint-fuller.pdf"},{"credibility":1,"name":"DOJ Office of Public Affairs: Debtor Who Led Crypto Investment Scheme Denied Bankruptcy Discharge","type":"regulatory","url":"https://www.justice.gov/opa/pr/debtor-who-led-crypto-investment-scheme-denied-bankruptcy-discharge"},{"credibility":2,"name":"CoinDesk: SEC Sues Texas Man Over $12.3 Million Alleged Crypto Scheme Built on Fake AI Trading Bots","type":"news_article","url":"https://www.coindesk.com/business/2026/05/30/sec-sues-texas-man-over-usd12-3-million-alleged-crypto-scheme-built-on-fake-ai-trading-bots"},{"credibility":2,"name":"CoinTelegraph: SEC Charges Texas Man With $12.3M Crypto Fraud Using Fake AI Trading Bots","type":"news_article","url":"https://cointelegraph.com/news/sec-charges-texas-man-with-123m-crypto-fraud-fake-ai-trading-bots"},{"credibility":2,"name":"Decrypt: US Trustee Calls Out 'Dishonest Debtor' in $12.5M Crypto Bankruptcy Case","type":"news_article","url":"https://decrypt.co/338920/us-trustee-dishonest-debtor-12-5m-crypto-bankruptcy-case"},{"credibility":2,"name":"Securities Docket: SEC Charges Texas Resident in Alleged Multi-Million Dollar Crypto Asset Fraud Scheme","type":"news_article","url":"https://www.securitiesdocket.com/2026/06/01/sec-charges-texas-resident-in-alleged-multi-million-dollar-crypto-asset-fraud-scheme/"},{"credibility":2,"name":"investorclaims.com: Nathan Fuller SEC AI Crypto Trading Bot Fraud","type":"news_article","url":"https://investorclaims.com/blog/nathan-fuller-sec-ai-crypto-trading-bot-fraud/"},{"credibility":2,"name":"Yahoo Finance: US Trustee Calls Out 'Dishonest Debtor' in $12.5M Crypto Bankruptcy Case","type":"news_article","url":"https://finance.yahoo.com/news/us-trustee-calls-dishonest-debtor-054021552.html"}],"summary":"Nathan Fuller is a Cypress, Texas resident charged by the SEC on May 28, 2026 with orchestrating an alleged $12.3 million crypto fraud through Privvy Investments LLC and the assumed business name Gateway Digital Investments. According to the SEC complaint and Fuller's own admissions in subsequent bankruptcy proceedings, the scheme raised funds from approximately 150 investors using false promises of AI-powered trading bots generating guaranteed returns; Fuller later admitted in bankruptcy court to operating Privvy as a Ponzi scheme and falsifying documentation. A U.S. Bankruptcy Court denied Fuller's discharge of over $12.5 million in debts in August 2025, leaving him personally liable to creditors.","timeline":[{"date":"2022-10-01","event":"Fuller allegedly begins raising investor funds through Privvy Investments LLC and Gateway Digital Investments, promising AI-powered crypto trading returns.","source":"SEC Complaint — Case 4:26-cv-04237","source_url":"https://www.sec.gov/files/litigation/complaints/2026/complaint-fuller.pdf"},{"date":"2024-06-01","event":"Scheme allegedly winds down; SEC identifies mid-2024 as the end of the operative fundraising period.","source":"SEC Complaint — Case 4:26-cv-04237","source_url":"https://www.sec.gov/files/litigation/complaints/2026/complaint-fuller.pdf"},{"date":"2024-10-01","event":"Texas state court appoints a receiver in an investor lawsuit against Fuller and Privvy Investments. Fuller subsequently files for Chapter 7 bankruptcy.","source":"DOJ Office of Public Affairs — Bankruptcy Discharge Denial Press Release","source_url":"https://www.justice.gov/opa/pr/debtor-who-led-crypto-investment-scheme-denied-bankruptcy-discharge"},{"date":"2025-08-01","event":"U.S. Bankruptcy Court for the Southern District of Texas enters default judgment denying Fuller's discharge of more than $12.5 million in unsecured debts after Fuller admits to operating Privvy as a Ponzi scheme and falsifying bankruptcy documents.","source":"DOJ Office of Public Affairs — Bankruptcy Discharge Denial Press Release","source_url":"https://www.justice.gov/opa/pr/debtor-who-led-crypto-investment-scheme-denied-bankruptcy-discharge"},{"date":"2025-09-10","event":"U.S. Department of Justice announces the bankruptcy discharge denial publicly.","source":"DOJ Office of Public Affairs — Bankruptcy Discharge Denial Press Release","source_url":"https://www.justice.gov/opa/pr/debtor-who-led-crypto-investment-scheme-denied-bankruptcy-discharge"},{"date":"2026-05-28","event":"SEC files civil complaint against Nathan Fuller in the U.S. District Court for the Southern District of Texas (Case No. 4:26-cv-04237), alleging securities fraud, unregistered securities offerings, and related violations in connection with the $12.3 million Privvy Investments scheme.","source":"SEC Litigation Release LR-26558","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26558"},{"date":"2026-05-30","event":"Major crypto and financial news outlets including CoinDesk, CoinTelegraph, and The Block report on the SEC charges.","source":"CoinDesk — SEC Sues Texas Man Over $12.3 Million Alleged Crypto Scheme","source_url":"https://www.coindesk.com/business/2026/05/30/sec-sues-texas-man-over-usd12-3-million-alleged-crypto-scheme-built-on-fake-ai-trading-bots"}]},"v":1}