Luxury, Lies and Millions: How Texas Crypto Ponzi Operator’s Scam Backfired in Court

Texas Ponzi Scheme Operator Blocked From Wiping Out $12.5 Million Debts

A Texas man who admitted running a cryptocurrency Ponzi scheme will remain on the hook for millions after a federal court stripped him of bankruptcy protection.

The Bankruptcy Court for the Southern District of Texas issued a default judgment on 1 August against Nathan Fuller, who operated Privvy Investments LLC.

Fuller had sought Chapter 7 bankruptcy in October 2024 after investors launched lawsuits and a receiver was appointed to seize his assets.

Lavish Spending With Investor Money

Court filings revealed that instead of directing funds into crypto trades, Fuller used investor cash to bankroll a lavish lifestyle.

Records show money was funnelled into luxury goods, high-end gambling trips, and even a nearly $1 million home purchased for his ex-wife, where he continued to live.

Investigators Uncover False Testimony And Hidden Assets

The U.S. Trustee Program (USTP), which challenged Fuller’s bankruptcy bid, said he deliberately concealed assets, failed to keep records, and repeatedly lied under oath.

He was also accused of submitting fabricated documentation both in his personal filing and in Privvy’s separate bankruptcy case.

At one stage, Fuller was held in civil contempt for ignoring court orders.

Eventually, he admitted Privvy had been a Ponzi scheme and confessed to giving false testimony in his bankruptcy proceedings.

Source: freepik

Court Rules Against Fuller After No Defence Filed

Fuller failed to respond to the USTP’s complaint, paving the way for the default judgment.

As a result, he remains personally liable for more than $12.5 million in unsecured debts, leaving creditors free to pursue claims directly against him.

USTP Warns Against Misusing Bankruptcy System

Kevin Epstein, U.S. Trustee for Region 7 covering the Southern District of Texas, said the ruling reflected the agency’s stance against dishonest debtors.

He declared,

“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.”

Crypto Sector Still Battling Trust Issues

While Fuller’s downfall highlights the ongoing risks of fraudulent crypto investment schemes, the wider digital asset industry continues to develop.

Earlier this year, wallet infrastructure firm Privy — unrelated to Fuller’s business — raised $15 million in funding, bringing its total to more than $40 million.

The company’s technology now supports major platforms such as Hyperliquid, Farcaster, OpenSea, and Blackbird.