Home News Crypto Course Founder Settles with SEC Over Fraud Charges

Crypto Course Founder Settles with SEC Over Fraud Charges

by dave
1 minutes read

In a surprising twist in the world of cryptocurrency education, the founder of the American Bitcoin Academy, Brian Sewell, found himself in hot water with the Securities and Exchange Commission (SEC). Sewell and his firm, Rockwell Capital Management, faced charges of misleading investors about a crypto hedge fund promising artificial intelligence-driven returns. Without admitting or denying the allegations, they have reached a settlement with the SEC.

The SEC’s investigation revealed that Sewell had enticed his students to invest approximately $1.2 million into the Rockwell Fund. He claimed this fund would leverage AI and crypto trading strategies for profit. However, the reality was starkly different; the fund never launched, and the touted AI and machine learning technologies were non-existent.

Gurbir S. Grewal, the SEC’s Director of Enforcement, emphasized that the commission remains vigilant against the misuse of popular tech terms like AI and crypto to defraud investors. This case serves as a reminder of the importance of due diligence and skepticism towards investments that sound too good to be true.

As part of the settlement, Rockwell Capital Management will pay $1.6 million, while Sewell is personally responsible for $223,229. This outcome underscores the SEC’s commitment to protecting investors and maintaining the integrity of the cryptocurrency market.

Additionally, the SEC highlighted several discrepancies in Sewell’s investor pitch, including false claims about his educational background and prior hedge fund management experience. This case is a cautionary tale for both investors and educators in the rapidly evolving crypto space.

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