Bankruptcy Court Has Denied A Debtor A Bankruptcy After The Trustee Discovered He Was Hiding Money In Cryptocurrencies

The US Bankruptcy Court has denied a debtor a bankruptcy. On August 1, 2025, the Bankruptcy Court for the Southern District of Texas entered a default judgment against Nathan Fuller. Fuller owned Privvy Investments LLC. Privvy was a cryptocurrency investment company that he used to divert investor funds from investors. Fuller spent a portion of the money on luxury goods and gambling trips. In addition he had bought a nearly $1 million home for his ex-wife. Incidentally, his ex-wife was involved in the business and Fuller still resided in the home.

The court ordered the default order after the U.S. Trustee Program (USTP) filed a motion for the court to deny the bankruptcy discharge of more than $12.5 million. The USTP discovered Fuller had concealed assets and lied in his bankruptcy case to evade his creditors. This also included investors in his cryptocurrency Ponzi scheme.

Fuller filed for Chapter 7 bankruptcy in October 2024. Fuller did this after a receiver was appointed to take possession of his assets in a lawsuit brought by investors.

Trustee Discovers Fuller Was Hiding Assets

The USTP conducted an investigation. As a result of the investigation, the USTP Houston office filed a complaint objecting to Fuller’s discharge. The trustee alleged Fuller had concealed extensive assets in cryptocurrencies and failed to keep records. In addition, the trustee also claimed he made multiple false oaths regarding his bankruptcy case. 

The court held Fuller in civil contempt for failing to comply with court orders. This forced Fuller to admit that he had operated Privvy as a Ponzi scheme. He also admitted to fabricating documents to advance the scheme. Fuller also admitted that he gave false testimony and documents to the chapter 7 trustee appointed to administer his bankruptcy.

Following those admissions, Fuller failed to respond to the USTP’s complaint. Of course, this lead to a default judgment in the USTP’s favor. As a result, Fuller remains personally liable for his debts. These include more than $12.5 million in unsecured debts listed in his bankruptcy schedules. As result, this means creditors may continue collections on claims against him.

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