The U.S. Securities and Exchange Commission (SEC) has sued Texas resident Nathan Fuller, alleging he raised about $12.3 million from roughly 150 investors through a crypto investment scheme built around false claims of AI-powered trading bots, guaranteed returns and insurance protections.

According to a complaint filed in the U.S. District Court for the Southern District of Texas, Fuller operated through Privvy Investments LLC and the assumed business names Privvy Investments and Gateway Digital Investments.

The SEC says he sold passive joint-venture interests in a purported crypto arbitrage trading operation from at least October 2022 through mid-2024.

The agency claims that Fuller told investors that proprietary AI-based trading bots…