The US Securities and Exchange Commission has filed suit against the founder of Privvy, alleging he defrauded investors out of $12.3 million by falsely marketing AI-powered trading bots that did not exist. According to the complaint, the platform's core selling point — automated bots generating returns through artificial intelligence — was fabricated. The SEC alleges the founder, Fuller, misappropriated investor funds for personal use, including purchasing a roughly $1 million home, gambling, travel, trading cards, and a Jeep. The case highlights continued regulatory scrutiny of crypto projects that leverage AI claims to attract investment, a trend that has grown alongside broader enthusiasm for artificial intelligence. No legitimate trading activity underpinned the scheme, regulators allege.
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