According to TechFlame, U.S. prosecutors have charged Canadian citizen Nathan Gauvin with orchestrating a fraudulent scheme that raised over $42 million through false advertising, targeting individual users on the chat platform Discord. The scheme claimed to invest the funds in both traditional finance and cryptocurrency. He used most of the money for investor withdrawals, purchasing luxury jewelry, and paying off credit card debts. He also obtained $800,000 in credit from a fintech company by submitting falsified information, which he used for personal expenses. From May 2022 to October 2024, Gauvin and others lured investors into investing in Gray Digital Capital Management Inc. and its fund, Gray Fund, claiming to offer clients the opportunity to invest in a fund that "blends TradFi and DeFi." He misrepresented his qualifications, the company’s assets and performance, presented falsified account statements, and even claimed that Gray Fund had achieved a return rate of 4,384%. Authorities arrested Gauvin in the United Kingdom on Wednesday. It is currently not possible to immediately identify his private attorney. The U.S. Securities and Exchange Commission (SEC) has also filed similar securities fraud charges, alleging that Gauvin lied to regulators and submitted false documents when the investigation began.