The Securities and Exchange Commission charged Nathan Fuller of Cypress, Texas, on May 28, 2026, with raising approximately $12.3 million from roughly 150 investors through a scheme involving fake AI-powered crypto trading bots. The SEC alleges Fuller promised returns of 40 to 50 percent in 30 to 45 days while fabricating account statements and falsely claiming FDIC insurance.
What happened
According to SEC Litigation Release No. 26558, filed in the U.S. District Court for the Southern District of Texas, Fuller promoted purported high-frequency arbitrage trading bots powered by artificial intelligence. These bots supposedly executed thousands of trades per day to capture small price differentials across crypto exchanges.
Fuller allegedly told investors they could expect guaranteed returns of 40 to 50 percent within 30 to 45 days. The complaint claims these promises were false and that no such trading algorithm existed.
Investors received fabricated account statements showing profitable trades, fake FDIC insurance certificates, and falsified balance confirmations. In reality, only about 3 percent of raised funds — roughly $380,000 — was ever deployed into actual cryptocurrency trading.
Key facts
| Defendant | Nathan Fuller |
| Location | Cypress, Texas |
| SEC litigation release | No. 26558 |
| Filing date | May 28, 2026 |
| Total raised | ~$12,300,000 |
| Approximate investors | ~150 |
| Promised returns | 40-50% in 30-45 days |
| Actual crypto trading | ~$380,000 (3% of total) |
| Personal expenses | ~$6,200,000 |
| Ponzi payments | ~$5,500,000 |
Nathan Fuller impact
The complaint alleges Fuller diverted approximately $6.2 million to personal expenses, including homes, vehicles, gambling, and travel. Another $5.5 million went toward Ponzi-style payments to earlier investors to maintain the illusion of profitability.
The scheme relied heavily on trendy AI branding to attract victims. By associating the investment with cutting-edge technology, Fuller allegedly overcame normal investor skepticism. The case illustrates how artificial intelligence buzzwords can obscure classic Ponzi mechanics.
Criminal charges were also announced by the U.S. Attorney’s Office for the Southern District of Texas, meaning investors may recover through both criminal restitution and civil SEC proceedings. However, recovery rates in crypto Ponzi cases are historically low when the underlying assets are spent.
What investors should do
Any investor who sent money to Nathan Fuller, his companies, or any platform selling AI trading bots with guaranteed returns should assume their capital is at risk. Document every transfer, email, and account statement immediately.
Contact the SEC through its Office of Investor Education and Advocacy to report losses. The SEC may establish a Fair Fund if disgorged funds become available.
Review your bank and credit card statements for recurring charges or wire transfers. Report these to your financial institution and request a fraud investigation.
How to recover your losses
Investors may pursue recovery through SEC Fair Fund distributions, criminal restitution orders, or private securities litigation. The earlier an attorney can freeze assets and trace fund flows, the better the chance of recovering meaningful capital.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in fraud recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
- Visit our website for a free consultation
Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
