Texas Ponzi Scheme Debtor Denied $12.5M Bankruptcy Protection in Crypto Case

Core Viewpoint - The U.S. Trustee Program successfully denied bankruptcy protection to Nathan Fuller, who attempted to evade over $12.5 million in debts related to a cryptocurrency Ponzi scheme, highlighting the agency's commitment to combating fraud in the bankruptcy system [1][4][6]. Group 1: Case Background - Nathan Fuller, owner of Privvy Investments LLC, filed for Chapter 7 bankruptcy in October 2024 after a state court appointed a receiver to seize his assets due to investor lawsuits [1]. - Fuller was found to have concealed assets, falsified documents, and lied under oath to avoid repaying creditors [2][4]. Group 2: Fraudulent Activities - Fuller solicited funds under the pretense of cryptocurrency investments but diverted the money for personal use, including luxury items and gambling trips [3]. - He purchased a nearly $1 million home for his ex-wife, who was also involved in the business, while continuing to reside there despite their separation [3]. Group 3: Legal Proceedings - Fuller was held in civil contempt for failing to comply with court orders and admitted to operating Privvy as a Ponzi scheme during the proceedings [5]. - The court entered a default judgment in favor of the USTP after Fuller failed to respond to their complaint, leaving him personally liable for over $12.5 million in unsecured debts [6]. Group 4: USTP's Mission - The USTP aims to protect the integrity of the bankruptcy system and holds dishonest actors accountable, as demonstrated by the outcome of Fuller's case [7].