The U.S. Securities and Exchange Commission (SEC) charges Texas resident Nathan Fuller with conducting a cryptocurrency fraud scheme that it alleges raised $12.3 million from about 150 investors. According to the SEC’s complaint as reported by multiple outlets, the scheme is built around purported “AI trading bots” that allegedly were not real or were otherwise used to mislead investors about trading activity and returns.
The SEC alleges Fuller diverted a substantial portion of investor funds for personal use, including $6.2 million, rather than deploying it for legitimate trading. The SEC also alleges that approximately $5.5 million was paid out to investors in a Ponzi-like manner, while only a small share—about 3% of the funds—was used for actual cryptocurrency trading.
The outlets agree on the core allegations: the amount raised, the number of investors, the role of the purported AI bots in the promotion, and the alleged allocation of funds away from trading. The SEC’s action seeks to enforce federal securities laws based on these claims, and the defendant’s alleged conduct is subject to legal proceedings.
