The U.S. Securities and Exchange Commission (SEC) has charged the founder of the online course American Bitcoin Academy, Brian Sewell, and his company Rockwell Capital Management with fraud.
According to the agency, 15 students who want to learn how to trade digital assets were deceived for a total of $1.2 million.
The SEC said that from early 2018 to mid-2019, Sewell encouraged hundreds of online students to invest in the Rockwell Fund hedge fund. He allegedly promised to use artificial intelligence and cryptocurrencies to make a profit.
According to the regulator, Sewell never launched the fund and did not perform trading operations described to investors in advertising. Subsequently, the funds invested by the students were stolen during the hacking of his digital wallet.
"Whether it's AI, cryptocurrencies, DeFi, or any other buzzword, the SEC will continue to hold accountable those who use attention — grabbing technologies to deceive investors," said Gurbir Grewal, the SEC's director of enforcement.
The defendants agreed to settle the charges without admitting or denying the SEC's allegations. In addition to the injunction, Rockwell Capital Management will pay $1.6 million, and Sewell - $223,229.
According to the agency, 15 students who want to learn how to trade digital assets were deceived for a total of $1.2 million.
The SEC said that from early 2018 to mid-2019, Sewell encouraged hundreds of online students to invest in the Rockwell Fund hedge fund. He allegedly promised to use artificial intelligence and cryptocurrencies to make a profit.
According to the regulator, Sewell never launched the fund and did not perform trading operations described to investors in advertising. Subsequently, the funds invested by the students were stolen during the hacking of his digital wallet.
"Whether it's AI, cryptocurrencies, DeFi, or any other buzzword, the SEC will continue to hold accountable those who use attention — grabbing technologies to deceive investors," said Gurbir Grewal, the SEC's director of enforcement.
The defendants agreed to settle the charges without admitting or denying the SEC's allegations. In addition to the injunction, Rockwell Capital Management will pay $1.6 million, and Sewell - $223,229.
