Texas man involved in a cryptocurrency Ponzi Scheme! Bankruptcy discharge denied, facing $12.5 million creditor claims.

The U.S. Bankruptcy Court for the Southern District of Texas ruled to deny local man Nathan Fuller's bankruptcy discharge request of over $12.5 million due to his alleged operation of a Crypto Assets Ponzi Scheme and concealment of assets. This ruling means that Fuller will continue to bear significant debt and liability to creditors.

Bankruptcy discharge application rejected

According to the statement from the U.S. Trustee Program (USTP), the court discovered that Fuller engaged in behaviors such as concealing assets, making false statements, and forging documents while hearing his Chapter 7 bankruptcy case. Fuller filed for bankruptcy in October 2024, after being sued by multiple investors who accused his Crypto Assets investment company Privvy Investments LLC of fraud.

Ponzi Scheme and Fund Misappropriation Details

The investigation revealed that Fuller used some of the investors' funds to purchase luxury goods, gambling trips, and to buy a property worth nearly $1 million for his ex-wife. He also admitted that Privvy actually operated in a Ponzi Scheme manner and forged financial documents to cover up the flow of funds.

Position of Courts and Regulatory Authorities

Kevin Epstein, the trustee in the United States, emphasized that the bankruptcy system will not serve as a safe haven for fraudsters, and USTP will continue to take legal action against dishonest debtors to uphold the integrity of the bankruptcy process.

The U.S. Technology Policy Office (USTP Houston Office) pointed out that Fuller made false oaths multiple times in the bankruptcy case and Privvy's separate bankruptcy filing, failed to comply with court orders, and was ultimately found guilty of civil contempt of court.

Absentee Judgment and Debt Responsibility

Due to Fuller not responding to the allegations from the regulatory authorities, the court made a default judgment on August 1, ruling that he must bear $12.5 million in unsecured debt and take full responsibility for future creditor claims. This ruling serves as a warning for fraud cases in the crypto assets sector, demonstrating the regulatory authorities' zero tolerance for such behavior.

Conclusion

The Nathan Fuller case highlights the high risks and regulatory challenges that still exist in the cryptocurrency market. As regulatory authorities strengthen their crackdown on encryption scams and bankruptcy abuses, investors need to be more cautious when participating in related investments and ensure they choose projects with transparency and compliance. For more legal and regulatory updates in the crypto market, please follow the official Gate platform.