Texas crypto Ponzi operator denied $12.5M bankruptcy discharge

Core Points - A Texas man, Nathan Fuller, has been denied bankruptcy protection, making him personally liable for over $12.5 million in debts due to his operation of a cryptocurrency Ponzi scheme [1][2][3] - The Bankruptcy Court for the Southern District of Texas issued a default judgment against Fuller after he failed to respond to the U.S. Trustee Program's complaint [2][3] - Fuller admitted to operating Privvy Investments LLC as a Ponzi scheme, falsifying documents, and providing false testimony during the bankruptcy proceedings [2] Company and Industry Summary - Fuller used Privvy Investments LLC to misappropriate investor funds for personal luxuries, including gambling trips and a nearly $1 million home for his ex-wife [1] - The U.S. Trustee Program emphasized its commitment to maintaining the integrity of the bankruptcy system and will not allow fraudulent activities to undermine it [2][3] - Creditors are now able to pursue Fuller directly for the unsecured claims totaling over $12.5 million, as he remains fully responsible for these debts [3]