A Texas court blocked bankruptcy relief for the operator of Privvy Investments LLC

A Texas bankruptcy court has denied the bankruptcy filing by Nathan Fuller, the operator of Privvy Investments LLC., handing his creditors and victims the legal recourse they need to continue to pursue restitution. 

The U.S. Trustee Program (USTP) secured a win for investors this month after the Bankruptcy Court for the Southern District of Texas denied a bankruptcy discharge for Nathan Fuller, the operator of Privvy Investments LLC.

Fuller was found to have concealed assets, lied in bankruptcy filings, and operated his cryptocurrency investment company as a Ponzi scheme, diverting millions of dollars in investor funds for personal use.

Texas bankruptcy court rejects bankruptcy discharge

Investors who lost funds to the crypto Ponzi scheme that Nathan Fuller ran through the Privvy Investments front secured a win this month when a Texas court ruled that he should not be allowed to erase his debts through bankruptcy.

On August 1, the court found Fuller guilty by default. He filed for bankruptcy in October 2024 after he was sued in a state court by the victims of his scheme. The lawsuit resulted in a receiver being appointed to seize his assets. When he filed for bankruptcy, Fuller stated that he owed over $12.5M in debts to the defrauded investors.

Instead of cooperating with the bankruptcy process, Fuller reportedly interfered repeatedly with the process and was deceptive. He didn’t keep financial records, made false statements under oath, and was dishonest about his assets in both his personal case and the separate bankruptcy filing for Privvy Investments.

The statement by the Justice Department’s Office of Public Affairs claimed that reviewed evidence showed that Fuller used the diverted investor funds to pay for luxury goods, gambling trips, and a nearly $1M home purchased for his ex-wife, who had been involved in the business and continued to live with him.

“Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy,” Kevin Epstein, U.S. trustee of Region 7, which covers the Southern District of Texas, said. “The USTP remains vigilant for cases filed by dishonest debtors, who threaten the integrity of the bankruptcy system.”

Fuller admitted he ran Privvy Investments as a Ponzi scheme

The collapse of Fuller’s defense came after he was held in civil contempt for failing to comply with court orders. During the proceedings, Fuller admitted that Privvy Investments had operated as a Ponzi scheme and that he had fabricated documents to perpetuate it. He further confessed to giving false testimony and falsifying bankruptcy documents to obstruct the Chapter 7 trustee assigned to his case.

Despite these admissions, Fuller did not respond to the complaint filed by the USTP’s Houston office, which objected to his bankruptcy discharge. His lack of response allowed the court to issue a default judgment, preventing him from evading his debts.

The USTP plays an important role in safeguarding the bankruptcy system. By pursuing dishonest debtors, the agency works to ensure that bankruptcy protection is reserved for those who don’t intend to take advantage of the system. The program operates across 21 regions and 88 field offices nationwide.

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