A U.S. court denies the $1.25 billion bankruptcy filing of an encryption Ponzi Scheme operator.

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ChainCatcher News, a Texas court in the United States has denied Nathan Fuller’s bankruptcy application. He admitted to operating a crypto assets Ponzi Scheme through Privvy Investments LLC, with an amount involved exceeding $1.25 billion. The court found that Fuller concealed assets, forged records, and used investor funds for luxury goods, gambling trips, and purchasing nearly $1 million in property for his ex-wife. The U.S. Department of Justice emphasized that bankruptcy proceedings will not become a "safe haven" for crypto fraudsters. Although Blockchain technology can trace the flow of funds, legal experts point out that investors are likely to recover only a portion of their funds, especially when assets have been misappropriated or transferred overseas.

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