The US Securities and Exchange Commission (SEC) has levied fraud allegations against Brian Sewell, the founder of the American Bitcoin Academy’s online cryptocurrency course, and his company Rockwell Capital Management.
The allegations pertain to an purported scheme aimed at defrauding students enrolled in the online course.
As per the SEC, Sewell purportedly urged his online students to invest in the Rockwell Fund, a hedge fund he claimed would utilize artificial intelligence and cryptoasset trading techniques to yield profits. The SEC contends that Sewell collected around $1.2 million from 15 students but failed to establish the fund or execute the promised trading strategies.
Instead, he is accused of retaining the deposited funds in Bitcoin, which were subsequently pilfered when Sewell’s digital wallet fell victim to hacking.
“We allege that Sewell defrauded students at the online American Bitcoin Academy out of over a million dollars by lying about investment opportunities at his so-called crypto hedge fund. Among other things, it falsely claimed that its investment strategies would be guided by its own ‘artificial intelligence’ and ‘machine learning’ technology, which, like the fund itself, never existed.
“Whether it is artificial intelligence, crypto, DeFi or another buzzword, the SEC will continue to hold accountable those who claim to use ostentatious technologies to lure and defraud investors.”
