SEC, FBI Charge Canadian Man in $42M Multi-Year Investment Fraud

A 26-year-old Canadian citizen, Nathan Gauvin, has been charged by U.S. federal prosecutors in reference to a $42M fraud scheme that focused traders via the social media platform Discord. 

Gauvin allegedly claimed to lift funds for cryptocurrency and conventional monetary investments however misappropriated a lot of the cash for private bills and luxurious purchases, authorities stated.

Multi-million greenback scheme targets traders

In keeping with a 21-count indictment unsealed within the U.S. District Courtroom for the Japanese District of New York, Gauvin lured tons of of traders into his web-based funding firm, Grey Digital Capital Administration Inc., and its flagship Grey Fund. The agency purported to supply a method “that blends TradFi (conventional finance) and DeFi (decentralized finance).”

Prosecutors allege that Gauvin supplied false details about his credentials, the agency’s belongings, and efficiency. He allegedly fabricated financial institution and brokerage statements to point out inflated returns, at one level claiming that the Grey Fund had cumulative returns of 4,384%. 

The asset attestations had been supposedly verified by an audit agency, however prosecutors say the paperwork had been doctored and never independently confirmed.

U.S. Legal professional Joseph Nocella stated, “As alleged, the defendant’s funding firm was a home of playing cards constructed with investor funds and held along with lies. When his home of playing cards collapsed, Gauvin doubled down by obstructing the regulator’s investigation and attempting to defraud a lender. Gauvin’s run of lies ends at present.”

Misuse of investor funds

Authorities declare that Gauvin used a lot of the cash raised from traders to pay earlier investor withdrawals, buy luxurious items, jewellery, and settle private bank card payments. 

Some funds had been additionally diverted to pay private bills, together with membership at a personal membership in London. Prosecutors estimate losses from the Grey Digital fraud at roughly $20M.

Fraudulent credit score and regulatory obstruction

Past defrauding traders, Gauvin allegedly obtained $800,000 in credit score from two FDIC-insured banks by submitting false info to a monetary expertise firm. The funds had been reportedly spent on private bills.

Gauvin can also be accused of obstructing a Securities and Change Fee (SEC) investigation by offering falsified paperwork. The SEC filed parallel securities fraud costs, noting that Gauvin continued submitting false paperwork even throughout the ongoing regulatory probe.

Arrest and requires victims

Authorities arrested Gauvin in England on December 10, 2025, following a provisional arrest warrant issued by the Japanese District of New York. On the time, no private lawyer for him may very well be instantly recognized.

The FBI has urged potential victims to return ahead, stating, “Victims could also be eligible for sure providers, restitution, and rights underneath federal and/or state regulation.” FBI Assistant Director in Cost Christopher G. Raia stated, “Gauvin allegedly engaged in a separate scheme, utilizing falsified information, to induce an organization to lend him an extra $1.5M. 

The FBI stays devoted to dismantling any smoke and mirrors act focusing on unsuspecting victims for monetary enrichment.”

On-line persona and background

Gauvin, who glided by the net names “defigray” and “grey,” constructed a following on Discord by providing seemingly goal funding recommendation. He additionally based Blackridge LLC, claiming the agency managed over $1B in belongings when he was 22 years outdated, in accordance with the SEC.

Prosecutors allege that from Could 2022 to October 2024, Gauvin and his associates relied on on-line platforms and solid monetary information to convey traders into Grey Digital and the Grey Fund. As an alternative of placing the cash into the investments he promised, they are saying Gauvin diverted most of it for his personal private use.

Prices and allegations

Gauvin is dealing with a 21-count federal indictment that features conspiracy to commit securities fraud and wire fraud, securities fraud, wire fraud, funding advisor fraud, financial institution fraud, cash laundering, obstruction of justice, and aggravated id theft. 

Prosecutors say the costs define the total scope of the schemes he’s accused of operating. Prosecutors say these costs come up from his alleged schemes to defraud each particular person traders and a New York-based monetary expertise firm.

The fees stay allegations, and Gauvin is presumed harmless except and till confirmed responsible in a U.S. federal court docket.

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