*The SEC has filed a lawsuit against Privvy Investments founder Nathan Fuller, accusing him of running a $12.3 million crypto scheme built around fake AI-powered trading bots.*

*According to regulators, Fuller raised money from around 150 investors between October 2022 and mid-2024 by promising extremely high returns from automated crypto arbitrage trading.*

*Investors were allegedly told the bots could generate 40–50% profits within 30–45 days and sometimes over 100% in just 21 days.*

*The SEC says the bots never worked as advertised and had no real AI functionality or proper risk management. Out of all the money raised, only about $380,000 was actually used to buy crypto assets, and those trades were unprofitable.*

*Investigators claim Fuller spent at least $6.2 million on personal expenses including a house, travel, gambling, collectible cards, and a car, while another $5.5 million was allegedly used to pay earlier investors in a Ponzi-like structure.*

*The complaint also states that Fuller used fake guarantees to reassure clients, including false claims about licensing, insurance protection, and even a fabricated audit letter allegedly created with ChatGPT after investors began requesting withdrawals.*

SEC Sues Privvy Founder Over $12.3M Crypto Scheme Using Fake AI Bots