The Founder of the American Bitcoin Academy is
facing scrutiny from the Securities and Exchange Commission (SEC) over
allegations of fraud targeting his students.
Based in Hurricane, Utah, and later Puerto Rico, Brian Sewell enticed hundreds of students into investing in his Rockwell Fund.
He touted groundbreaking investment strategies based on artificial
intelligence and machine learning, promising lucrative returns in the volatile
crypto market.
However, investigations revealed that Sewell never
launched the fund nor implemented the advanced technologies he flaunted. The
SEC alleges that 15 students, lured by Sewell’s promises, invested $1.2 million
into the non-existent hedge fund.
Gurbir Grewal, the Director of the SEC’s Division of
Enforcement, mentioned: “We allege that Sewell defrauded students in his
online American Bitcoin Academy of over a million dollars through a series of
lies about investment opportunities in his purported crypto hedge fund.”
“Among other things, he falsely claimed that
his investment strategies would be guided by his own ‘artificial intelligence’
and ‘machine learning ‘ technology, which, like the fund itself, never existed.
Whether it’s AI, crypto, DeFi, or some other buzzword, the SEC will continue to
hold accountable those who claim to use attention-grabbing technologies to
attract and defraud investors.”
Failure to Safeguard Investments
Instead of fulfilling his commitments, Sewell purportedly retained the funds in Bitcoin, which were subsequently stolen when his digital
wallet fell victim to hacking. The SEC’s complaint, filed in the U.S. District
Court for the District of Delaware, charges Sewell and Rockwell Capital
Management with violating antifraud provisions of federal securities laws.
According to the securities watchdog, Sewell and his company
consented to injunctive relief without admitting or denying the allegations.
Rockwell Capital Management agreed to disgorge $1,602,089 in addition to
prejudgment interest, while Sewell faces a civil penalty of $223,229, pending
court approval.
Recently, the SEC attributed the unauthorized post declaring the approval of Bitcoin ETFs to a “SIM swap” attack involving an unauthorized transfer of a mobile phone number to a different device. This security breach, which occurred externally through a telecommunications network, sparked a widespread frenzy within the cryptocurrency sector.
The Founder of the American Bitcoin Academy is
facing scrutiny from the Securities and Exchange Commission (SEC) over
allegations of fraud targeting his students.
Based in Hurricane, Utah, and later Puerto Rico, Brian Sewell enticed hundreds of students into investing in his Rockwell Fund.
He touted groundbreaking investment strategies based on artificial
intelligence and machine learning, promising lucrative returns in the volatile
crypto market.
However, investigations revealed that Sewell never
launched the fund nor implemented the advanced technologies he flaunted. The
SEC alleges that 15 students, lured by Sewell’s promises, invested $1.2 million
into the non-existent hedge fund.
Gurbir Grewal, the Director of the SEC’s Division of
Enforcement, mentioned: “We allege that Sewell defrauded students in his
online American Bitcoin Academy of over a million dollars through a series of
lies about investment opportunities in his purported crypto hedge fund.”
“Among other things, he falsely claimed that
his investment strategies would be guided by his own ‘artificial intelligence’
and ‘machine learning ‘ technology, which, like the fund itself, never existed.
Whether it’s AI, crypto, DeFi, or some other buzzword, the SEC will continue to
hold accountable those who claim to use attention-grabbing technologies to
attract and defraud investors.”
Failure to Safeguard Investments
Instead of fulfilling his commitments, Sewell purportedly retained the funds in Bitcoin, which were subsequently stolen when his digital
wallet fell victim to hacking. The SEC’s complaint, filed in the U.S. District
Court for the District of Delaware, charges Sewell and Rockwell Capital
Management with violating antifraud provisions of federal securities laws.
According to the securities watchdog, Sewell and his company
consented to injunctive relief without admitting or denying the allegations.
Rockwell Capital Management agreed to disgorge $1,602,089 in addition to
prejudgment interest, while Sewell faces a civil penalty of $223,229, pending
court approval.
Recently, the SEC attributed the unauthorized post declaring the approval of Bitcoin ETFs to a “SIM swap” attack involving an unauthorized transfer of a mobile phone number to a different device. This security breach, which occurred externally through a telecommunications network, sparked a widespread frenzy within the cryptocurrency sector.
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- Source: https://www.financemagnates.com//cryptocurrency/sec-charges-american-bitcoin-academy-founder-with-12m-fraud/
