A Texas man who ran a cryptocurrency investment company and defrauded investors has been denied bankruptcy protection, leaving him personally responsible for over $12.5 million in debts. The U.S. Trustee Program (USTP) secured a judgment against Nathan Fuller after he concealed assets and provided false information during his bankruptcy filings.
Bankruptcy Court Denies Discharge
On August 1, the Bankruptcy Court for the Southern District of Texas issued a default judgment against Fuller, a chapter 7 debtor, preventing him from discharging his debts. Fuller had filed for bankruptcy in October 2024, shortly after a receiver was appointed to take possession of his assets due to a lawsuit from investors in Texas state court. Bankruptcy is a legal process that can relieve people of debts they cannot pay, but only if they are honest about their finances.
During the bankruptcy process, the USTP’s Houston office filed a complaint objecting to Fuller’s discharge. The complaint alleged that Fuller had concealed significant assets, failed to maintain proper financial records, and made multiple false statements under oath. These actions were seen as attempts to evade his creditors and hinder the administration of his bankruptcy case. Fuller also filed separate bankruptcy documents for Privvy Investments, which contained additional falsehoods.
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U.S. Trustee Kevin Epstein of Region 7, which includes the Southern District of Texas, highlighted the importance of these measures. “Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy,” Epstein said. He emphasized that the USTP remains vigilant in identifying and acting against dishonest debtors who threaten the integrity of the bankruptcy system.
Admission of Fraudulent Activities
Nathan Fuller eventually admitted to operating Privvy Investments as a Ponzi scheme. He acknowledged fabricating documents and providing false testimony to advance the scheme. He also admitted to misleading the chapter 7 trustee assigned to oversee both his personal and company bankruptcies.
A significant portion of the diverted funds was spent on personal luxuries. Fuller used investor money for gambling trips, luxury goods, and even purchased a nearly $1 million home for his ex-wife, who had been involved in the business and with whom he still resided. These admissions were made after he was held in civil contempt for failing to comply with court orders.
Despite these admissions, Fuller failed to respond to the USTP’s complaint. As a result, the court entered a default judgment against him. This ruling means that Fuller remains personally liable for all his debts, including the more than $12.5 million listed in his bankruptcy schedules.
Consequences for Creditors
The judgment allows creditors, including defrauded investors, to continue pursuing claims against Fuller to recover their losses. The denial of his bankruptcy discharge ensures that he cannot use bankruptcy as a shield to avoid repayment. The USTP’s actions demonstrate a commitment to protecting creditors and maintaining fairness within the bankruptcy system.
The USTP operates nationwide, with 21 regions and 88 field offices, and aims to promote the integrity and efficiency of the bankruptcy system. This case highlights the program’s role in preventing abuse by debtors who attempt to hide assets, falsify records, or lie under oath to escape financial responsibilities.
Nathan Fuller’s case serves as a reminder that the bankruptcy system cannot be used to hide from obligations arising from fraudulent activities. The court’s decision ensures accountability and sends a clear message that dishonesty in bankruptcy filings carries serious consequences.
To read the original order please visit U.S. Department of Justice website