AI-based crypto trading bots fail to generate 'guaranteed profits.' Can you guess what happened next? (Hint: $12.3 million loss)

Sometimes the worst money hazards are the ones where we fall for a pitch that sounds too good to be true. Would you take the bait on this one?

Nathan Fuller, of Cypress, Texas, allegedly convinced 150 investors — read that again: 150 investors — to invest approximately $12.3 million in his "proprietary AI-based trading bots" that would supercharge profits in cryptocurrencies. 

According to the Securities and Exchange Commission complaint, from at least October 2022 through mid-2024, Fuller offered and sold joint-venture interests in a crypto asset trading scheme through his company, Privvy Investments, LLC, and under the assumed business names Privvy Investments and Gateway Digital Investments.  

Fuller falsely promised some investors that their investments would generate returns of more than 40-50% within 30 to 45 days — and they stood to make guaranteed profits exceeding 100% in as little as 21 days, according to the SEC. 

Fuller allegedly said that investor funds were secured by a surety bond, insured by the FDIC, and protected by a professional liability insurance policy.  

Remember, 150 people fell for this.

According to the SEC complaint, Fuller’s bots did not function as represented (wait? what!), and he misappropriated at least $6.2 million of investor funds for personal expenses, used approximately $5.5 million of investor funds to make Ponzi-like payments, and lulled investors using fake account statements and fabricated correspondence from phony entities.

The SEC's complaint, filed in the U.S. District Court for the Southern District of Texas on May 28, 2026, charges Fuller with violating the Securities Act of 1933 and the Securities Exchange Act of 1934.  The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against Fuller.

Avoiding money hazards: If it's too good to be true — oh, never mind, you would never fall for that, right?