SEC sues man over alleged AI crypto scheme

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Texas resident Nathan Fuller, accusing him of defrauding investors out of approximately $12.3 million. Fuller allegedly promoted a cryptocurrency investment scheme using false claims of AI-powered trading bots and guaranteed high returns. The SEC claims that only a small fraction of the funds, about 3%, was actually used for crypto trading, while the majority was allegedly misappropriated for personal use or used for Ponzi-like payments to existing investors. Fuller reportedly used fabricated statements and AI-generated documents to deceive investors as concerns about withdrawals grew.