SEC accuses Texas man Nathan Fuller of a $12.3M crypto investment scam centered on deceptive AI bot claims

The SEC has charged Texas resident Nathan Fuller with running a $12.3 million crypto fraud that marketed interests in a joint-venture trading scheme falsely promoted as using AI trading bots, according to the enforcement complaint filed in the U.S. Southern District of Texas ^{[1] [2] [3]}.

The agency alleges Fuller diverted roughly $6.2 million for personal use and used about $5.5 million to make Ponzi-like payments to earlier investors, while only about 3% of funds were actually used for crypto trading, and that approximately 150 investors were affected ^{[3] [2]}.

The SEC's action seeks remedies available in its complaint and highlights regulators' and investors' scrutiny of products that combine crypto and AI claims, a trend the agency says requires heightened vigilance ^{[1] [4]}.

The case underscores the SEC's focus on deceptive marketing in the crypto sector and the persistence of schemes that promise outsized returns through purportedly automated or AI-driven trading strategies ^{[1] [3]}.