SEC Enforcement Action Targets Discord-Based Investment Fraud
The SEC charged Canadian citizen Nathan Gauvin and three related entities with orchestrating fraudulent investment schemes that targeted retail investors across the United States and abroad. According to the SEC’s complaint, Gauvin used Discord servers and other online communications to promote false investment opportunities, misrepresent his experience, and exaggerate the performance of funds he claimed to manage.
The enforcement action was filed in the U.S. District Court for the Eastern District of New York and reflects the SEC’s growing focus on fraud conducted through digital communities rather than traditional financial channels.
How the Alleged Investment Schemes Were Marketed
The SEC alleges that Gauvin cultivated a following on Discord by presenting himself as a sophisticated and highly successful investment professional. He claimed to manage more than $1 billion in assets through an entity called Blackridge, LLC. In reality, the SEC says Blackridge had no legitimate investment operations and no meaningful assets under management.
Using Discord chat rooms and direct communications, Gauvin allegedly promoted multiple investment offerings to retail investors, emphasizing exclusivity, high returns, and insider-level access. These promotions often included screenshots, charts, and statements designed to convey legitimacy and consistent profitability.
False Claims About Fund Performance and Assets
Central to the SEC’s case are allegations that Gauvin made repeated false statements about investment performance. He allegedly claimed that one fund, referred to as the Gray Fund, generated double-digit monthly returns and managed tens or hundreds of millions of dollars.
According to the SEC, those claims were fabricated. Actual performance was significantly lower, and the fund never approached the asset levels Gauvin represented. The SEC alleges that investors relied on these misstatements when deciding to commit funds.
Unregistered Securities Offerings and Investor Solicitation
The SEC further alleges that Gauvin and his entities raised more than $18 million through unregistered securities offerings. These offerings were allegedly marketed to retail investors without the disclosures, protections, or registration required under federal securities laws.
The entities named in the complaint include:
• Blackridge, LLC
• Gray Digital Capital Management USA, LLC
• Gray Digital Technologies, LLC
The SEC claims these entities operated as vehicles for raising investor funds rather than legitimate investment businesses.
Misappropriation of Investor Funds for Personal Use
Rather than using investor money as promised, the SEC alleges that Gauvin diverted substantial funds for personal expenses. The complaint describes spending on luxury items and lifestyle expenses that had no connection to any legitimate investment activity.
Alleged personal expenditures included high-end jewelry, concierge services, real estate-related costs, and artwork. The SEC contends that these uses directly contradicted Gauvin’s representations to investors about how their money would be deployed.
Breakdown of Trust and Investor Harm
According to the SEC, Gauvin’s actions caused direct financial harm to investors who believed their funds were being professionally managed. By misrepresenting both performance and fund structure, the SEC alleges that Gauvin deprived investors of the ability to make informed decisions.
This pattern of conduct reflects a broader enforcement concern: fraudsters using digital platforms to establish credibility quickly and avoid traditional oversight.
Seed Stock Scheme Involving Gray Digital Technologies
In addition to the primary fund-related allegations, the SEC also charged Gauvin in connection with a separate “seed stock” offering involving Gray Digital Technologies. In 2024, Gauvin allegedly sold shares in the company for approximately $30,000 per share.
He reportedly told investors that Gray Digital Technologies was a valuable and revenue-generating company. According to the SEC, the company had no operating business, no revenue, and no meaningful assets at the time of the offering.
After raising funds from at least two investors, Gauvin allegedly stopped communicating altogether, leaving investors without information or access to their investment.
Securities Law Violations Alleged by the SEC
The SEC’s complaint alleges multiple violations of federal securities laws, including:
• Securities fraud based on material misrepresentations and omissions
• Sale of unregistered securities
• Misuse and misappropriation of investor funds
The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil monetary penalties, and conduct-based restrictions that would bar Gauvin from serving as an investment adviser in the future.
Parallel Criminal Charges Filed
Alongside the SEC’s civil action, the U.S. Attorney’s Office for the Eastern District of New York announced parallel criminal charges against Gauvin. While the SEC case is civil in nature, the criminal case could expose Gauvin to additional penalties, including potential imprisonment, if convicted.
Parallel proceedings are common in serious securities fraud cases and reflect coordination between civil and criminal enforcement authorities.
For more information, contact the securities lawyers at Sallah Astarita & Cox, at 212-509-6544 or visit Securities Lawyer
 | Representing Advisors and Investors, Nationwide. |
Editor’s Note: Readers are reminded that the SEC often over-charges, and ultimately backs down on its charges once a target mounts a defense. Unless the release indicates that the respondent has settled the charges, these are the SEC’s allegations, not evidence of wrongdoing. The respondent has not yet had the opportunity to present evidence or to counter the allegations contained in the SEC Press Release.
Last updated on December 24th, 2025
