U.S. Trustee Blocks $12.5M Crypto Bankruptcy Case
- The U.S. Trustee blocked a $12.5M bankruptcy case involving Nathan Fuller.
- Fraudulent activities were central in denying the bankruptcy claim.
- Affects individual investors without impacting major cryptocurrencies.
Nathan Fuller of Privvy Investments LLC was blocked from discharging $12.5M in debts through bankruptcy by a U.S. court, citing fraud and deceit, on September 10, 2025.
Fuller’s case underlines the judiciary’s firm stance on preventing bankruptcy misuse in crypto frauds, reinforcing investor protection standards without affecting major cryptocurrencies or markets.
Nathan Fuller’s $12.5M crypto bankruptcy case was blocked by the U.S. Trustee on September 10, 2025, amidst allegations of systemic fraud in Texas.
The case highlights regulatory efforts to maintain bankruptcy system integrity against fraudulent debtors, with no large-scale crypto market disruption observed.
U.S. Trustee Exposes $12.5M Fraud Scheme by Fuller
Nathan Fuller, owner of Privvy Investments LLC, attempted to discharge $12.5M in debts through bankruptcy. The efforts were revoked due to fraudulent concealment and false testimony.
The U.S. Trustee Program found that Fuller ran a crypto Ponzi scheme. Kevin Epstein’s statement emphasized that bankruptcy won’t shield fraudulent activities.
“Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy. The USTP remains vigilant for cases filed by dishonest debtors, who threaten the integrity of the bankruptcy system.”
Investor Losses Surpass $12.5M with No Major Crypto Impact
The case affects over $12.5M in individual investor losses but has no direct effects on major cryptocurrencies like ETH or BTC, per court findings.
Regulatory efforts are reinforced, ensuring that fraudulent actors remain accountable, thus preserving the system’s integrity against misuse.
Past Cases Like BitConnect Shape Current Judgment
Similar cases like BitConnect and OneCoin have also seen bankruptcy discharges denied due to proven fraudulent activities, setting precedents for regulatory actions.
Future judgments will likely continue to enforce strict standards, preventing misuse by individuals attempting to evade accountability for crypto-related frauds.
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