SEC Accuses Bitcoin Academy Founder of $1.2 Million Fraud

The U.S. Securities and Exchange Commission (SEC) has accused Brian Sewell, founder of the online course American Bitcoin Academy, and his company Rockwell Capital Management of fraud.

According to the agency, 15 students seeking to learn digital asset trading were defrauded of a total of $1.2 million.

The SEC stated that from early 2018 to mid-2019, Sewell urged hundreds of online students to invest in the Rockwell Fund hedge fund. He allegedly promised to use artificial intelligence and cryptocurrencies to generate profits.

The regulator reported that Sewell never launched the fund nor conducted the trading operations described to investors in advertisements. Subsequently, the funds invested by students were stolen during a hack of his digital wallet.

“Whether it’s AI, cryptocurrencies, DeFi, or any other buzzword, the SEC will continue to hold accountable those who use attention-grabbing technologies to defraud investors,” said the agency’s Director of Enforcement, Gurbir Grewal.

The accused agreed to settle the charges without admitting or denying the SEC’s allegations. In addition to a court injunction, Rockwell Capital Management will pay $1.6 million, and Sewell will pay $223,229.

In January, the SEC accused the cryptocurrency project HyperFund of defrauding investors of $1.7 billion.

Earlier, the CFTC warned about fraud involving artificial intelligence.