The U.S. Securities and Exchange Commission filed a complaint in federal court charging Canadian citizen Nathan Gauvin and three entities he controls, Blackridge, LLC, Gray Digital Capital Management USA, LLC, and Gray Digital Technologies, LLC, with orchestrating two allegedly fraudulent securities offerings promoted to retail investors through Discord. The SEC alleges the schemes raised more than USD 18 million from investors in the United States and abroad and that approximately USD 6.3 million was misappropriated, supported by fabricated credentials, false performance metrics, and fictitious account statements. The complaint alleges Gauvin built an online following by claiming to be a successful investment professional managing more than USD 1 billion in assets through Blackridge, which the SEC describes as a shell entity. From September 2022 to November 2024, he and his entities allegedly conducted an unregistered offering of interests in the “Gray Fund,” claiming double-digit monthly returns and more than USD 78 million in assets, while the fund allegedly had a monthly compounded return of about 1.4% and far lower assets. Separately, beginning in May 2024, Gauvin allegedly offered “seed stock” in Gray Digital Technologies at USD 30,000 per share, claiming a USD 60 million valuation and more than USD 12 million in annual revenue, despite the SEC alleging the company had no operations, assets, or revenue; at least USD 60,000 was raised from two retail investors before communication ceased. The SEC charged antifraud violations against Gauvin and all three entities, and registration violations against Gauvin, Gray Digital Capital Management USA, and Gray Digital Technologies, seeking permanent injunctions, disgorgement with prejudgment interest, civil penalties, conduct-based injunctions, and a bar preventing Gauvin from acting as an investment adviser. The U.S. Attorney’s Office for the Eastern District of New York also announced parallel criminal charges.
U.S. Securities & Exchange Commission 2025-12-10
U.S. Securities and Exchange Commission charges Canadian citizen Nathan Gauvin and three entities over Discord fraud schemes raising more than USD 18 million
The U.S. Securities and Exchange Commission (SEC) filed a complaint against Nathan Gauvin and three entities he controls for allegedly orchestrating fraudulent securities offerings, raising over USD 18 million. The SEC claims Gauvin misappropriated USD 6.3 million using fabricated credentials and false metrics, charging him with antifraud and registration violations. Parallel criminal charges were announced by the U.S. Attorney’s Office for the Eastern District of New York.