Quick Breakdown
- Nathan Fuller denied Chapter 7 discharge in Texas after $12.5M crypto Ponzi fraud.
- Court found he concealed assets, falsified records, and lied under oath.
- Investor funds were spent on gambling, luxury items, and real estate.
A Texas bankruptcy court has rejected Nathan Fuller’s attempt to wipe out debts tied to his collapsed crypto Ponzi scheme, setting a strong precedent for fraud cases in bankruptcy.
Court Ruling Bars Discharge of Debts
According to a September 10 press release, the U.S. Trustee Program (USTP) secured a default judgment on Aug. 1 from the Bankruptcy Court for the Southern District of Texas. The ruling prevents Fuller from erasing more than $12.5 million in obligations owed to investors he defrauded through his company, Privvy Investments LLC.
5/5 A Texas court has denied Nathan Fuller a discharge from debts related to a crypto Ponzi scheme, reinforcing legal consequences for fraudulent crypto activities. #CryptoFraud #LegalPrecedent #TexasCourt
— Synthia (@Synthia_SF) September 10, 2025
The court concluded that Fuller deliberately hid assets, failed to keep financial records, and lied under oath in a calculated bid to abuse the Chapter 7 process.
“Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy,”
said U.S. Trustee Kevin Epstein of Region 7, stressing that the agency will continue to pursue dishonest debtors.
Pattern of Concealment and Misconduct
Fuller filed for Chapter 7 protection in October 2024, shortly after a state court appointed a receiver to seize his assets in response to lawsuits from defrauded investors. The USTP’s Houston office quickly intervened, alleging that Fuller obstructed justice by concealing property and falsifying documents.
The investigation revealed that Fuller not only fabricated records but also refused to comply with court orders. His defiance led to a civil contempt ruling, intensifying legal pressure until he admitted that Privvy Investments was run as a Ponzi scheme from its inception.
Investor Funds Diverted for Lavish Lifestyle
Court documents show that Fuller misappropriated investor money to bankroll personal indulgences. Instead of trading as promised, funds were used for gambling trips, luxury purchases, and a nearly $1 million residence for his ex-wife, who was also a business associate.
His admissions included providing false testimony and falsified financial statements, which further hindered the trustee’s efforts to trace the missing capital.
Notably, In a decisive ruling from New York, a federal judge has ordered Eddy Alexandre, founder of the defunct cryptocurrency platform Eminifx, to repay more than $228 million in restitution. This judgment follows the court’s determination that Eminifx operated as a Ponzi scheme, defrauding tens of thousands of investors.
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