Discord Crypto Scam: $42M Fraud Exposed, SEC Files Charges

Nathan Gauvin is charged with running a $42 million fraud via Discord, luring investors with false promises and fake credentials, and using funds for personal gain. The SEC and FBI are investigating.

Nathan Gauvin, a 26-year-old Canadian, has been charged with orchestrating a large-scale investment fraud scheme that raised between $18 million and $42 million from investors in the US and abroad. Gauvin allegedly used Discord communities to attract investors, presenting himself as an experienced investment professional and promoting Gray Digital Capital Management Inc., its Gray Fund, and other entities. He promised high returns, fabricated credentials, and provided false financial data and documents. Gauvin reportedly used investor funds for personal expenses, luxury purchases, and to pay previous investors. He also secured an $800,000 loan from a fintech company using false information. In 2024, he launched a new scheme selling Gray Digital “seed shares” at $30,000 each, claiming a $60 million company valuation. The SEC and FBI are investigating, with charges of securities fraud filed and authorities urging victims to come forward. The SEC reminded investors to verify information about investment offers, especially those promoted online.