Bankruptcy is often seen as a way to wipe the slate clean, but a Texas man has just learned the hard way that dishonesty in the process comes at a steep price.
Nathan Fuller, a cryptocurrency investor turned fraudster, has been blocked from erasing over $12.5 million in debt after federal officials uncovered lies, hidden assets, and a full-blown Ponzi scheme.
The Court’s Decision
On August 1, the U.S. Bankruptcy Court for the Southern District of Texas entered a default judgment against Fuller, who had filed for Chapter 7 bankruptcy.
The ruling came after he repeatedly failed to cooperate and ignored court orders.
This means Fuller will remain personally responsible for millions in unpaid debts.
How the Scheme Worked
Fuller owned Privvy Investments LLC, a crypto investment company that he secretly ran as a Ponzi scheme.
Instead of investing his clients’ money as promised, he diverted funds for personal luxuries.
The spending spree included expensive goods, lavish gambling trips, and even a nearly $1 million home purchased for his ex-wife — who was also tied to the business and still lived with him.
Lies and Cover-Ups
When the walls started closing in, Fuller turned to bankruptcy, hoping to dodge creditors.
But investigators found he had concealed assets, fabricated documents, and lied under oath in multiple bankruptcy filings.
He even admitted to giving false testimony in an attempt to mislead the court-appointed trustee handling his case.
No Safe Haven for Fraudsters
Federal officials made it clear that the bankruptcy system cannot be abused as an escape hatch for fraud.
“Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy,” said U.S. Trustee Kevin Epstein, who oversees Region 7, which includes southern Texas.
Why It Matters
The U.S. Trustee Program (USTP), which fights bankruptcy fraud across the country, emphasizes that its mission is to protect the integrity of the system — ensuring it works fairly for debtors, creditors, and the public.
With this ruling, Fuller’s creditors are now free to continue pursuing claims against him, keeping him on the hook for the multimillion-dollar debt he tried to erase.