Crypto Fraudster Denied Bankruptcy in Ponzi Scheme Case

Crypto News Regulation

Crypto Fraudster Denied Bankruptcy in $12.5 Million Ponzi Scheme Case

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 11, 2025

Key Takeaways

A Houston court blocked Nathan Fuller’s bankruptcy bid after uncovering a $12.5 million crypto fraud;
Fuller admitted to running Privvy Investments as a Ponzi scheme and hiding financial records;
A default judgment leaves Fuller liable, with the court emphasizing that bankruptcy cannot shield financial fraud.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

Crypto Fraudster Denied Bankruptcy in $12.5 Million Ponzi Scheme Case

BITDEGREE IN YOUR SOCIAL FEED

A federal court in Houston has ruled against Nathan Fuller’s attempt to eliminate over $12.5 million in debt through bankruptcy.

The decision followed findings that Fuller ran his investment company as a fraudulent crypto operation, according to a press release from the Justice Department’s Office of Public Affairs.

The US Department of Justice (DOJ) revealed that Fuller misled the court by hiding assets, altering financial documents, and admitting that his firm, Privvy Investments LLC, operated as a Ponzi scheme.

What is ENS? Ethereum Name Service Explained (ANIMATED)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

His bankruptcy petition, filed in October 2024 after legal action from investors, did not hold up under further investigation.

After authorities reviewed the case, they discovered that Fuller had given false information in his personal and business filings. He also failed to disclose the full extent of his finances, which led to additional legal consequences, including being found in contempt of court.

He later admitted the company’s structure relied on using new investor money to pay earlier participants.

Because Fuller did not respond to the case brought by the US Trustee, the court issued a default judgment. That decision keeps him personally responsible for the debts and allows creditors to continue pursuing repayment, even though he filed for bankruptcy.

US Trustee Kevin Epstein stated that the outcome reflects an effort to protect the bankruptcy process from misuse. Epstein said:

Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy.

Recently, the DOJ took legal steps to claim over $12 million in Tether USDT $1.00 linked to a fake crypto site called ShakepayEX. How? Read the full story.