SEC Files Charges Against Founder of Online Crypto Scheme
The U.S. Securities and Exchange Commission (SEC) has taken legal action against the founder of American Bitcoin Academy, Brian Sewell, and his company, Rockwell Capital Management, for allegedly running a fraudulent cryptocurrency scheme that targeted students. The SEC claims that Sewell convinced hundreds of online students to invest in the Rockwell Fund, promising advanced technologies like AI and crypto-asset trading strategies. However, he never launched the fund or implemented the promised strategies and instead kept the invested money in bitcoin. The SEC alleges that 15 students lost a total of $1.2 million. Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, emphasized that the fund and the technology never existed.
Settlement Agreement
Sewell and Rockwell Capital Management have agreed to settle the fraud charges brought against them by the SEC. The settlement, which is subject to court approval, will include injunctive relief, disgorgement, prejudgment interest, and civil penalties. Defendant Rockwell Capital Management will pay $1,602,089 in disgorgement and prejudgment interest, while Defendant Sewell will pay a civil penalty of $223,229.
Hot Take: SEC Cracks Down on Crypto Fraud
The SEC’s charges against Brian Sewell and Rockwell Capital Management demonstrate the regulatory body’s commitment to cracking down on fraudulent cryptocurrency schemes. This case highlights the importance of conducting thorough due diligence and verifying the legitimacy of investment opportunities in the crypto space. Investors should be skeptical of claims that seem too good to be true, such as promises of high returns and the use of advanced technologies like AI. As the crypto industry continues to evolve, it is crucial to remain vigilant and stay informed to protect yourself from potential scams.
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