SEC Charges American Bitcoin Academy Founder With Fraud That Cost Students $1.2 Million

The U.S. Securities and Exchange Commission (SEC) has charged the laminitis of American Bitcoin Academy, accusing him of moving an online fraudulent crypto strategy that outgo students $1.2 million. The suspect “falsely claimed that his concern strategies would beryllium guided by his ain ‘artificial intelligence’ and ‘machine learning’ exertion which, similar the money itself, ne'er existed.”

SEC Charges Founder of Online Crypto Fraud

The U.S. Securities and Exchange Commission (SEC) announced Friday that it has charged the laminitis of American Bitcoin Academy “with fraud targeting students.” Brian Sewell and his company, Rockwell Capital Management, agreed to settee fraud charges successful transportation with a scheme, the regulator said, adding:

The SEC alleges that the fraudulent strategy outgo 15 students $1.2 million.

The SEC alleges that, betwixt aboriginal 2018 and mid-2019, Sewell encouraged hundreds of his online students to put successful the Rockwell Fund, a hedge money helium promised to launch. He claimed the money would usage precocious technologies similar AI and crypto-asset trading strategies to make returns for investors.

The securities watchdog further alleges that Sewell, who formerly resided successful Utah earlier moving to Puerto Rico, received $1.2 cardinal from 15 students for the Rockwell Fund. However, helium ne'er launched the money oregon implemented the promised trading strategies. Instead, helium held onto the invested wealth successful bitcoin, which helium claimed was stolen erstwhile his integer wallet was hacked.

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, commented: “We allege that Sewell defrauded students successful his online American Bitcoin Academy of implicit a cardinal dollars done a bid of lies astir concern opportunities successful his purported crypto hedge fund.” The SEC authoritative stressed:

Among different things, helium falsely claimed that his concern strategies would beryllium guided by his ain ‘artificial intelligence’ and ‘machine learning’ exertion which, similar the money itself, ne'er existed.

The SEC’s ailment charges the defendants with violating antifraud provisions of the national securities laws. The defendants person agreed to settee the charges and person consented to injunctive alleviation without admitting oregon denying the allegations successful the complaint. “Defendant Rockwell Capital Management besides agreed to wage disgorgement and prejudgment involvement totaling $1,602,089 and Defendant Sewell agreed to a civilian punishment of $223,229. The colony is taxable to tribunal approval,” the SEC detailed.

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