The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Privvy founder, accusing him of orchestrating a $12.3 million cryptocurrency fraud. The SEC claims that the founder misled investors by promoting non-existent AI 'bots' and misappropriated funds for personal expenses, including a $1 million house, gambling, trading cards, travel, and a Jeep. The legal action highlights ongoing regulatory scrutiny in the crypto sector.