DOJ: Bankruptcy Discharge Denied in Crypto Ponzi Scheme Investment Fraud Case

A Texas man who ran a multimillion-dollar cryptocurrency Ponzi scheme will remain on the hook for more than $12.5 million in debt after a federal bankruptcy judge denied his bid for a discharge, according to the U.S. Department of Justice (DOJ).

Nathan Fuller, owner of Privvy Investments LLC, diverted investor money to buy luxury goods, take gambling trips, and purchase a nearly $1 million home for his ex-wife, who was involved in the business and continued to live with him.

The U.S. Trustee Program (USTP) sued to block Fuller’s bankruptcy discharge, alleging he concealed assets, failed to keep records, and lied under oath in both his personal and company bankruptcy cases.

Fuller filed for bankruptcy last October after a court-appointed receiver took control of his assets in a lawsuit brought by defrauded investors. During the bankruptcy process, Fuller admitted in civil contempt proceedings that Privvy was operated as a Ponzi scheme, that he fabricated documents to support the scheme, and that he gave false testimony and falsified bankruptcy documents to obstruct the court and the trustee.

He failed to respond to a Department of Justice complaint, resulting in an August 1 default judgment against him in U.S. Bankruptcy Court for the Southern District of Texas. He remains personally responsible for his debts, allowing creditors to continue seeking repayments.

Said Kevin Epstein, U.S. Trustee for Region 7, which covers the Southern District of Texas,

“Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy. The USTP remains vigilant for cases filed by dishonest debtors, who threaten the integrity of the bankruptcy system.”

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