TechFlow reports that on May 31, the U.S. Securities and Exchange Commission (SEC) charged Nathan Fuller, a resident of Texas, with fraud for using Privvy Investments, LLC and Gateway Digital Investments to solicit approximately $12.3 million from around 150 investors under the false pretense of an AI-powered cryptocurrency trading bot.
The SEC alleges that Fuller promised investors returns of 40% to 50% within 30 to 45 days, and in some cases claimed guaranteed returns exceeding 100% within 21 days. According to the complaint, Fuller misappropriated at least $6.2 million for personal expenses and used approximately $5.5 million to make payments resembling a Ponzi scheme. The SEC is seeking a permanent injunction, disgorgement of ill-gotten gains, and civil penalties.
