The SEC has charged Nathan Fuller, a Texas resident, over an alleged crypto investment scheme that used claims about AI trading bots to raise about $12.3 million from roughly 150 investors.

The complaint, filed May 28 in the U.S. District Court for the Southern District of Texas, says Fuller operated through Privvy Investments LLC and the assumed names Privvy Investments and Gateway Digital Investments. The SEC alleges he sold joint-venture interests from at least October 2022 through mid-2024.

According to the agency, Fuller told investors that proprietary AI-based bots would run high-frequency arbitrage trades across crypto platforms. The SEC says he also claimed some investments could return more than 40% to 50% within 30 to 45 days, and in some cases guaranteed profits above 100% in as little as 21 days.

Regulators allege the bots did not function as represented. The complaint says only about $380,000, or roughly 3% of investor funds, was used to buy crypto assets, and those trades were not made with the advertised bots or profitable. The SEC says at least $6.2 million was misappropriated for personal expenses, while about $5.5 million went to Ponzi-like payments.

The case is a pointed example of how AI branding is being folded into crypto fraud allegations. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties. Fuller has been accused in a civil complaint; the allegations still have to be tested in court.