SEC Charges American Bitcoin Academy Founder with Fraud
The Securities and Exchange Commission (SEC) has taken action against the founder of the American Bitcoin Academy, Brian Sewell, over allegations of fraud targeting his students. Sewell, who initially operated in Hurricane, Utah, and later moved to Puerto Rico, enticed hundreds of students to invest in his Rockwell Fund, promising groundbreaking investment strategies infused with artificial intelligence and machine learning for lucrative returns in the volatile crypto market.
However, investigations conducted by the SEC revealed that Sewell never launched the fund nor implemented the advanced technologies he claimed to possess. The SEC alleges that 15 students, enticed by Sewell’s false promises, invested a total of $1.2 million into the non-existent hedge fund.
Gurbir Grewal, the Director of the SEC’s Division of Enforcement, stated, 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. 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.
Instead of fulfilling his commitments, Sewell kept the funds in Bitcoin, which were later stolen when his digital wallet became a victim of hacking. The SEC has filed a complaint against Sewell and Rockwell Capital Management, charging them with violating antifraud provisions of federal securities laws in the U.S. District Court for the District of Delaware.
In response to the complaint, Sewell and his company have consented to injunctive relief without admitting or denying the allegations. As part of the settlement, Rockwell Capital Management agreed to disgorge $1,602,089, plus prejudgment interest, while Sewell potentially faces a civil penalty of $223,229 pending court approval.
The SEC’s action sends a strong message to individuals who deceive investors with false claims, especially in relation to innovative technologies such as artificial intelligence and machine learning. The SEC will continue to hold accountable those who misuse attention-grabbing terms to attract unsuspecting investors.
This case also highlights the importance of conducting thorough due diligence before investing in any fund or scheme. Investors should verify the legitimacy of claims made regarding investment strategies and technologies. As the crypto market remains volatile and susceptible to scams, potential investors must exercise caution and seek advice from reputable financial professionals.
The SEC’s commitment to protecting investors from fraud and maintaining the integrity of the securities market remains unwavering. By taking decisive action against individuals like Sewell, the SEC aims to create a safer investment environment for all participants.
