Gray Digital’s Multi-Million-Dollar Crypto Fraud Unravels

Federal prosecutors in the Eastern District of New York have announced charges against Nathan Gauvin, the founder and chief executive officer of Gray Digital, web-based investment management company, for his alleged role in a multi-million-dollar investment fraud.

A 21-count indictment filed in federal court accuses Gauvin—who also used the aliases “defigray” and “gray”—of conspiracy to commit securities and wire fraud, securities fraud, investment adviser fraud[1], bank fraud, money laundering, obstruction of justice, and aggravated identity theft. Gauvin, a Canadian national and the CEO of Gray Digital Capital Management, Inc., was arrested in England on a provisional warrant initiated by U.S. authorities.

According to prosecutors, Gauvin and others engaged in a scheme between May 2022 and October 2024 to mislead investors about the financial condition, assets, and performance of Gray Digital and its investment product, the Gray Fund. The indictment alleges that investors were provided with falsified documents and statements, including claims of extraordinary returns—such as a reported cumulative gain exceeding 4,000%—and representations that the fund had been audited and verified by independent professionals.

Investigators estimate that Gauvin raised over $42 million from investors, including individuals in New York, but diverted substantial portions of investor money for personal use. Alleged spending included luxury goods, credit card payments, and other non-investment-related expenses. Investor losses are estimated at approximately $20 million.

After Gray Digital collapsed in 2024, prosecutors allege that Gauvin attempted to obstruct an SEC investigation by submitting fraudulent records. The indictment also details a separate 2025 scheme in which Gauvin and associates allegedly used false financial information to obtain approximately $800,000 in credit from two U.S. banks, with the proceeds again used for personal expenses, including fees at an exclusive private club in London.

Gauvin remains presumed innocent unless and until proven guilty in court.

Gray Digital Indictment

What Should You do If you Invested in Gray Digital?

If you invested in Gray Digital, Gray Fund, or with Nathan Gauvin, you should take immediate steps to protect your rights. Federal prosecutors allege that the fund’s performance reports, audits, and account statements were falsified and that investor money was diverted for personal spending. If these allegations are true, investors may have strong legal claims for recovery of losses, even if they signed contracts that appeared to limit liability or restrict withdrawals. Your first priority should be to gather all records—subscription agreements, emails, text messages, account statements, wire confirmations, and screenshots. Do not rely on anything hosted by Gray Digital, which may disappear as the case progresses.

Next, act quickly. Crypto fraud cases move fast, and early action increases the likelihood of tracing assets, participating in restitution, or asserting claims against third parties—such as promoters, advisors, auditors, payment processors, or platforms that enabled the fund. You should also avoid communicating with anyone involved in the scheme until you speak with counsel.

MDF Law is actively investigating claims on behalf of investors nationwide. If you invested with Gray Digital or were promised returns that never materialized, contact MDF Law today for a free, confidential consultation. Our firm can help you explore all recovery options and protect your legal rights.