In a landmark ruling, a Texas bankruptcy court has denied Nathan Fuller’s bid to erase more than $12.5 million in debts, marking a major victory for defrauded investors and setting a precedent for how the U.S. legal system deals with crypto-related fraud.
The Case Against Fuller
Fuller, the man behind Privvy Investments LLC, admitted his so-called investment company was nothing more than a Ponzi scheme. Instead of trading or investing as promised, he siphoned off investor funds to bankroll a lavish lifestyle spending millions on gambling sprees, luxury goods, and even a nearly $1 million home for his ex-wife, a business associate with whom he continued living.
His downfall accelerated in October 2024 when a Texas state court appointed a receiver to seize his assets after investors filed a lawsuit. In a last-ditch attempt, Fuller filed for Chapter 7 bankruptcy, hoping to wipe the slate clean.
But the U.S. Trustee Program (USTP), part of the Department of Justice, stepped in. Their Houston office filed a complaint accusing Fuller of concealing assets, falsifying records, and lying under oath classic red flags in bankruptcy abuse.
The Court’s Findings
On August 1, 2025, the Bankruptcy Court for the Southern District of Texas entered a default judgment against Fuller. The court found that he:
- Hid assets to shield them from creditors.
- Failed to keep financial records, making it impossible to track investor money.
- Lied under oath and fabricated documents to obstruct the bankruptcy trustee.
His misconduct even led the court to hold him in civil contempt for refusing to follow orders. Under mounting pressure, Fuller finally admitted that Privvy Investments was built as a Ponzi scheme from the very start.
A Strong Message from Regulators
Kevin Epstein, U.S. Trustee for Region 7, was blunt in his statement:
“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.”
The ruling ensures Fuller remains personally liable for the $12.5 million owed to investors, shutting down his attempt to use bankruptcy as an escape hatch.
Why This Matters
The case underscores how U.S. regulators are tightening their grip on crypto-related fraud. For investors, it’s a rare moment of accountability in a sector often plagued by opaque schemes and bad actors. For fraudsters, it’s a warning: bankruptcy will not be a safe haven to escape consequences.
