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.

Imagine waking up to news that a staggering $400 million has vanished overnight from a leading crypto exchange. This isn’t a scene from a thriller movie but the reality of a sophisticated phone hacking conspiracy that shook the foundations of the cryptocurrency world. The U.S. federal government has unveiled charges against three individuals, Robert Powell, Carter Rohn, and Emily Hernandez, for their roles in a daring SIM swapping operation that targeted no less than fifty victims over two years.

This operation’s climax was the audacious theft from FTX, Sam Bankman-Fried’s cryptocurrency exchange, during its tumultuous collapse. An 18-page indictment sheds light on the intricacies of this scheme, accusing the trio of conspiracy to commit wire fraud and identity theft. Their most audacious act? On November 11, 2022, they infiltrated FTX, siphoning off $400 million in digital currency in a move that left the crypto community in shock.

How did they pull off such a monumental heist? The answer lies in the art of SIM swapping, a technique where the hackers gained control over an FTX employee’s phone number through AT&T, facilitating their illicit transfer of millions in crypto assets. This incident not only highlights the vulnerabilities in digital security but also answers the lingering question in the FTX saga: the mysterious disappearance of a significant amount of cryptocurrency in the exchange’s darkest hour.

The unveiling of these charges brings a new layer of understanding to the complexities and risks inherent in the digital currency space, emphasizing the importance of robust cybersecurity measures to protect against such sophisticated threats.

George Osborne, the former UK finance minister, has taken on a new role as an advisor at Coinbase, the renowned crypto exchange. This move marks a significant crossover between traditional finance and the ever-evolving world of digital currencies.

Osborne, who led the UK’s financial strategies as the chancellor of the exchequer from 2010 to 2016, brings a wealth of experience to Coinbase’s global advisory council. His expertise is expected to bolster the exchange’s regulatory and strategic positioning on a global scale.

The news has stirred up the crypto community, as Osborne’s appointment could bridge the gap between governmental finance policies and the dynamic nature of cryptocurrencies. This collaboration is seen as a step towards more integrated and informed regulatory frameworks in the crypto industry.

Previously, Osborne has been actively involved in the fintech sector, indicating his keen interest in innovative financial technologies, including blockchain and cryptocurrencies. His engagement with Coinbase at various fintech events, including the World Economic Forum in Davos, has laid the groundwork for this new advisory role.

Coinbase’s expansion and regulatory journey, especially in Europe, are set to benefit from Osborne’s insights. With licenses recently secured in multiple countries, the exchange is making significant strides in its global outreach.

Meanwhile, Coinbase continues to navigate regulatory challenges in the U.S., highlighting the importance of Osborne’s role in shaping the future of cryptocurrency regulations and market strategies.

In a surprising turn of events, FTX, the cryptocurrency exchange that declared bankruptcy, has announced plans to fully repay its customers. This hopeful news emerged during a recent court hearing, painting a brighter future for those affected by the exchange’s downfall.

Despite the initial drive to revive the platform, FTX has halted its efforts due to the absence of interested buyers, as reported by Reuters. This decision marks a significant shift in the exchange’s strategy post-bankruptcy.

The native token of FTX, FTT, experienced a notable surge, climbing over 11% following the announcement. This upswing reflects the market’s reaction to the unfolding developments at the defunct exchange.

Last year, Sam Bankman-Fried, the head of FTX, was found guilty of misusing customer funds, leading to the exchange’s dramatic collapse in late 2022. The ongoing legal proceedings and the company’s commitment to its customers continue to shape the narrative around this high-profile bankruptcy case.

As the story develops, more information about FTX’s plans to return 90% of customer funds is expected to surface, shedding light on the future of the embattled exchange.