Texas Man Ran $12.3 Million AI-Based Crypto Scheme, SEC Says

The SEC sued a Texas crypto trader, alleging he ran a $12.3 million investment scheme using fake AI trading bots.

Nathan Fuller operated the scheme from October 2022 through mid-2024 through his company Privvy Investments, according to the Securities and Exchange Commission’s complaint filed Thursday in the US District Court for the Southern District of Texas.

Fuller allegedly promised investors guaranteed profits exceeding 100% in as little as 21 days through high-frequency cryptocurrency arbitrage trading using proprietary AI-based bots. Fuller also told investors their funds were protected by FDIC insurance, a money-transmitter license, and surety bonds, the SEC said.

The ...