Earlier today, federal prosecutors in Brooklyn unsealed a 21-count indictment against Nathan Gauvin, also known as “defigray” and “gray,” a Canadian citizen. Gauvin faces charges including conspiracy to commit securities fraud and wire fraud, securities fraud, wire fraud, investment advisor fraud, bank fraud, money laundering, obstruction of justice, and aggravated identity theft. Authorities allege that Gauvin defrauded hundreds of investors through Gray Digital Capital Management Inc. (Gray Digital), an online investment company he founded and led as CEO. He is also accused of later attempting to defraud a New York-based financial technology company for credit from two banks insured by the Federal Deposit Insurance Corporation.
Gauvin was arrested in England on a provisional arrest warrant issued from the Eastern District of New York. Prosecutors say he raised more than $42 million from Gray Digital investors and obtained over $800,000 in credit from lenders.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge at the FBI’s New York Field Office; and Harry T. Chavis, Jr., Special Agent in Charge at IRS-Criminal Investigation New York announced the indictment.
“As alleged, the defendant’s investment company was a house of cards constructed with investor funds and held together with lies. When his house of cards collapsed, Gauvin doubled down by obstructing the regulator’s investigation and trying to defraud a lender. Gauvin’s run of lies ends today,” stated United States Attorney Nocella. “This Office remains deeply committed to protecting the investing public and the integrity of financial markets. We will continue to relentlessly pursue justice for victims of financial fraud.”
Nocella thanked the Department of Justice’s Office of International Affairs and the U.S. Securities and Exchange Commission’s Fort Worth Regional Office for their assistance.
“Nathan Gauvin allegedly lied about his background, qualifications and purported investment returns to raise at least $42 million from interested investors of his fund. Later, after being notified of a federal investigation into his activities,” stated FBI Assistant Director in Charge Raia. “Gauvin allegedly engaged in a separate scheme, using falsified records, to induce a company to lend him an addition $1.5 million. The FBI remains dedicated to dismantling any smoke and mirrors act targeting unsuspecting victims for financial enrichment.”
“Today’s indictment reflects IRS Criminal Investigation Special Agents continued resolve to investigate and prosecute those who engage in financial crimes,” stated IRS-CI New York Special Agent in Charge Chavis. “IRS-CI Special Agents are committed to working with our law enforcement partners to aggressively uncover and disrupt criminals who conspire to exploit our financial markets.”
According to court documents, between May 2022 and October 2024 Gauvin misled investors about his experience as well as Gray Digital’s assets and performance by providing fraudulent documents intended to verify assets under management and returns for Gray Digital’s flagship fund—the Gray Fund—which claimed an investment strategy blending traditional finance with decentralized finance technologies. Prosecutors say claims included false statements that since inception the fund had returned 4,384% cumulatively and that its holdings were verified by an audit firm; however, these attestations relied on doctored statements provided by Gauvin rather than independent verification.
It is alleged that instead of investing funds as promised, Gauvin used most deposits either for withdrawals requested by other investors or for personal expenses such as luxury goods or paying off credit card bills—resulting in estimated losses around $20 million.
After Gray Digital collapsed in 2024 amid regulatory scrutiny, authorities claim Gauvin tried to obstruct an SEC investigation by submitting fraudulent documents.
The indictment further alleges that between May 2025 and June 2025 Gauvin submitted false bank statements when seeking approximately $800,000 in credit from two FDIC-insured banks via a New York-based fintech company; proceeds were then spent on personal expenses including payments at a private members-only club in London.
The government emphasizes that all charges are allegations until proven otherwise.
Individuals who believe they may have been affected are encouraged to contact the FBI at http://fbi.gov/graydigitalfraud
The case is being prosecuted by Assistant United States Attorneys Nick M. Axelrod and Jessica K. Weigel with support from Paralegal Specialist Liam McNett.
