Nathan Fuller tried to use the legal system as his escape plan while fooling many investors, but instead, it slammed shut on him, costing him $12.5 million.
Texas man Nathan Fuller, founder of a crypto investment firm, Privvy Investments LLC, has been asked to pay over $12.5 million. The Texas court denied his bid for bankruptcy, exposing how he blew investor funds on luxury goods, gambling, and a nearly $1 million home for his ex-wife.
In October 2024, Nathan Fuller filed for bankruptcy amid a Texas lawsuit seeking asset seizure. The U.S. Trustee Program (USTP) objected, accusing him of concealing assets and submitting false records and oaths in his bankruptcy case.
According to USTP, Fuller used Privvy Investments to raise money as crypto investments, but instead funneled the funds for his own personal spending.
On August 1, a Texas bankruptcy court issued a default judgment against Nathan Fuller. The ruling detailed how he used investor money to finance a lavish lifestyle, including expenditures on high-end goods, gambling trips, and even the purchase of a $1 million home for his ex-wife, who was involved in the business and cohabitated with him.
“Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy,” said U.S. Trustee Kevin Epstein of Region 7 in an official press release, which includes the Southern District of Texas. “The USTP remains vigilant for cases filed by dishonest debtors, who threaten the integrity of the bankruptcy system.”
Later, Fuller admitted to operating privvy as a Ponzi scheme, while providing false testimony and documents to distort the work of the court-appointed Chapter 7 trustee.
After failing to respond to the USTP’s complaint, Fuller was hit with a default judgment, leaving him personally liable for over $12.5 million in unsecured debts and answerable to creditors.
The court’s denial of his bankruptcy discharge and the following $12.5 million judgment underscore a fundamental principle that reflects a maturing crypto sector still dealing with issues of trust stemming from fraud.
