The SEC alleges Nathan Fuller raised about $12.3 million from roughly 150 investors by promoting supposed AI-based trading bots with guaranteed or high-return claims. The complaint alleges misappropriation, Ponzi-like payments, and fake investor communications to keep victims investing.

The U.S. Securities and Exchange Commission alleges that Nathan Fuller, a Texas resident, ran a multi-million-dollar crypto asset scheme that relied on marketing claims about “AI-based trading bots.” According to the SEC’s litigation release, Fuller allegedly solicited roughly 150 investors and raised about $12.3 million by misrepresenting the nature and performance of the purported proprietary technology. The SEC alleges Fuller promised or implied guaranteed and high-return results to induce investment and then diverted investor funds for improper purposes. The SEC also contends that the scheme included Ponzi-like payments—described as using funds from later investors (or other investor money) to pay earlier participants—creating an appearance of legitimacy and returns. To reinforce that illusion, the SEC alleges Fuller used fabricated or misleading account statements and communications. The SEC further claims these fake materials were designed to lull victims and reduce the likelihood they would question what was happening. The case highlights a recurring fraud pattern in crypto promotions: “AI” or automated trading claims used as a credibility hook, followed by misappropriation and staged reporting to sustain investor trust.