PANews reported on May 31 that, according to The Block, the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit in Houston federal court, accusing Nathan Fuller, a resident of Cyprus, Texas, of operating a cryptocurrency fraud scheme involving up to $12.3 million. The scheme allegedly used fake AI trading bots to defraud investors. Fuller told investors that his proprietary AI-based bots could automatically scan cryptocurrency trading platforms, capture tiny price gaps through high-frequency arbitrage, and promised returns of 40% to 50% within 30 to 45 days. Some investors were even told they could receive guaranteed returns of over 100% within 21 days. The SEC alleges that Nathan Fuller, founder and sole member of Privvy Investments LLC, raised funds from approximately 150 investors in nine states and two foreign countries between October 2022 and mid-2024. He also operated under the pseudonym "Gateway Digital Investments." It is alleged that only about 3% of the funds were actually used for cryptocurrency trading, while Fuller himself embezzled at least $6.2 million and paid out about $5.5 million to early investors in a Ponzi scheme-like manner.