On August 1, 2025, the U.S. Bankruptcy Court for the Southern District of Texas entered a default judgment against Nathan Fuller, owner of Privvy Investments LLC, denying his Chapter 7 bankruptcy discharge of over $12.5M in debts, per. The U.S. Trustee Program (USTP) cited fraudulent concealment, false testimony, and operation of a crypto Ponzi scheme, with Fuller admitting to diverting investor funds for luxury goods, gambling trips, and a $1M home for his ex-wife, per,. U.S. Trustee Kevin Epstein emphasized, “Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy,” per.
Fuller filed for bankruptcy in October 2024 after a Texas state court appointed a receiver to seize his assets following investor lawsuits, per. The USTP’s investigation revealed Fuller concealed assets, falsified records, and operated Privvy Investments as a Ponzi scheme, promising 20% monthly returns with no legitimate trading, per. Funds were misused, including $400,000 on luxury cars, $250,000 on casino trips, and $2M funneled through shell firms and offshore crypto wallets, per. X posts from @CryptoLawyerz highlight parallels to Forsage ($340M losses), per.
The ruling affects individual investors with over $12.5M in losses but has no direct impact on major cryptocurrencies like Bitcoin (BTC) ($114,317.80) or Ethereum (ETH) ($4,070), per CoinMarketCap and. The crypto market cap remains stable at $3.8T, per. The case reinforces regulatory scrutiny, aligning with precedents set by BitConnect ($2B fraud) and OneCoin ($4B scam), where bankruptcy discharges were also denied, per.
Investors should verify platforms via sec.gov and ustp.gov, avoiding MLM crypto schemes like Privvy or GSPartners, per. Monitor Bitcoin and Ethereum on CryptoQuant with stop-losses at $112,000 and $4,000, respectively, or diversify into USDC, per TradingView. Follow @TheBlock__ on X for updates. The USTP’s vigilance, as seen in Forsage and Cryptex cases, signals stricter enforcement, potentially deterring Ponzi schemes in 2026, per,.
