SEC charges Texas man with $12.3M crypto AI fraud

Federal regulators have charged a Texas man with orchestrating a multimillion-dollar cryptocurrency investment fraud that allegedly used false claims about artificial intelligence to lure approximately 150 investors. The U.S. Securities and Exchange Commission filed a civil complaint in federal court on May 28, 2026, against Nathan Fuller of Cypress, Texas, and his entities Privvy Investments LLC and Gateway Digital Investments.

The SEC alleges that from October 2022 through mid-2024, Fuller raised roughly $12.3 million by selling investment interests in a purported crypto trading program. He marketed the business as using proprietary AI technology to conduct high-frequency arbitrage across digital asset markets, promising investors outsized returns with minimal risk. According to the complaint, investors were promised returns of 40 to 50 percent within 30 to 45 days, with some offers guaranteeing profits exceeding 100 percent in as little as 21 days.

Regulators contend these claims were false. The complaint states the AI trading bots either did not exist or failed to operate as promoted, and that only about $380,000, or roughly 3 percent of the funds raised, was used for any...