Texas Man Stole $12.3M Using Fake AI Crypto Trading Bots

A Texas man has been caught running a $12.3 million cryptocurrency scam by lying about having special AI trading robots that could make investors rich.

Nathan Fuller from Cypress, Texas, told about 150 people that his company had artificial intelligence bots (computer programs that trade automatically) that could make them 40-50% profits in just 30-45 days. Some investors were promised they could double their money in only 21 days.

To make his lies believable, Fuller claimed: • The money was protected by insurance • The FDIC (the agency that protects bank deposits) backed the investments • His AI bots were doing "high-frequency arbitrage trading" (buying crypto cheap on one platform and selling it for more on another - thousands of times per second)

None of this was true. The SEC (Securities and Exchange Commission - the government agency that protects investors) discovered that: • The AI trading bots didn't exist • Fuller spent $6.2 million on himself - buying personal items • He used $5.5 million to pay earlier investors with new investors' money (this is called a Ponzi scheme - an illegal practice where new money pays old debts) • He created fake account statements to trick investors

The SEC is now taking Fuller to court to get the stolen money back and punish him with fines. This case shows how scammers are combining buzzwords like "AI" and "crypto" to trick people into fake investment schemes.

Remember: If someone promises guaranteed huge returns in a short time, it's almost always a scam.

This is an AI-generated summary. Read the original article at: https://cointelegraph.com/news/sec-charges-texas-man-with-123m-crypto-fraud-fake-ai-trading-bots?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound