The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against the founder of Privvy for allegedly defrauding a $12.3 million cryptocurrency company.

CoinFeed 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 scam involving up to $12.3 million. The scam allegedly used fake AI trading bots to defraud investors. Fuller told investors that his proprietary AI-based bots could automatically scan cryptocurrency trading platforms, exploit 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.