U.S. court refuses to encrypt Ponzi scheme operators' $1.25 billion bankruptcy filing

Huobi HTX reported that according to Decrypt, a Texas court in the United States rejected Nathan Fuller's bankruptcy filing, the person admitted to operating a cryptocurrency Ponzi scheme through Privvy Investments LLC, involving more than $1.25 billion. The court found Fuller concealed assets, forged records, and used investor funds to luxury goods, gambling trips and buying nearly $1 million in property for his ex-wife. The U.S. Department of Justice stressed that bankruptcy proceedings will not become a "safe haven" for crypto fraudsters. Although blockchain technology can track the flow of funds, legal experts point out that investors are likely to be able to recover only a portion of the funds, especially when assets have been misappropriated or transferred overseas.