Another day, another SEC digital asset case.
Today, Wall Street's top regulator announced that a U.S. cryptocurrency entrepreneur has agreed to settle fraud charges for an online course he promoted called “American Bitcoin Academy.”
The SEC (Securities and Exchange Commission) said Friday that Brian Sewell and his company, Rockwell Capital Management, targeted students and forced them to invest in AI-powered cryptocurrency hedge funds to make millions. he claimed.
But Mr. Sewell, 51, and his company decided to keep the cash in the form of Bitcoin (BTC) and launch a fund after receiving $1.2 million from 15 students in an allegedly fraudulent scheme. There was no.
Then, according to the SEC, the BTC was eventually stolen in a hack and all the invested cash was lost.
The complaint states that Sewell had been holding investors' funds by converting them into Bitcoin, but the cryptocurrency wallet he used to store those assets was hacked and looted, and he lost everything. “It was,” he claims.
The complaint further alleges that “Mr. Sewell concealed the hacking and losses of the victim investors in order to prevent the discovery of the fraud.”
Mr. Sewell subsequently agreed to settle the charges without admitting or denying the charges.
Defendant Rockwell Capital Management agreed to pay disgorgement interest and prejudgment interest totaling $1,602,089, while Sewell agreed to a civil penalty of $223,229, the regulator added.
Gurbir S. Grewal, director of the SEC's Enforcement Division, said, “A series of lies about Mr. Sewell's investment opportunities in a purported cryptocurrency hedge fund led to him extorting more than $1 million from students at the online American Bitcoin Academy. He claims he was defrauded.”
He added that Sewell allegedly told students how much money they could make in the online American Bitcoin Academy cryptocurrency course, which “didn't exist.”
“Whether it's AI, cryptocurrencies, DeFi, or other buzzwords, the SEC will continue to hold accountable those who claim to be using high-profile technologies to attract and defraud investors.” warned Grewal.
Edited by Ryan Ozawa.
