Svmuu News: The U.S. Securities and Exchange Commission (SEC) announced it has charged Texas resident Nathan Fuller for allegedly raising approximately $12.3 million from about 150 investors through a fraudulent "AI crypto trading bot" scheme.

The SEC stated that from October 2022 to mid-2024, Fuller, operating under Privvy Investments LLC and Gateway Digital Investments, sold joint venture interests in crypto investments. He claimed to use an "AI high-frequency arbitrage bot" for crypto asset trading and promised investors "guaranteed returns" of 40% to over 100% within 21 to 45 days.

The regulator further alleged that Fuller falsely claimed investment funds were protected by FDIC insurance, surety bonds, and professional liability insurance. However, his purported trading bot did not operate as advertised. The SEC accused him of misappropriating at least $6.2 million of investor funds for personal expenses and using approximately $5.5 million from new investors for "Ponzi-like payments," while misleading investors with fabricated account statements and fictitious institutional communications.

The SEC has filed a lawsuit in the U.S. District Court for the Southern District of Texas, charging Fuller with violating securities offering and anti-fraud laws, and seeking permanent injunctions, disgorgement of ill-gotten gains, and civil penalties.