Founder of American Bitcoin Academy Charged with Crypto Fraud
The Securities and Exchange Commission (SEC) has charged Brian Sewell, the founder of American Bitcoin Academy, with crypto fraud. According to the SEC, Sewell convinced his students to invest in a hedge fund called Rockwell Fund, which he claimed would generate returns using artificial intelligence (AI) and cryptocurrency-related trading strategies.
Sewell’s Crypto Fraud Scheme
Instead of launching the fund, Sewell converted the investments into Bitcoin. Unfortunately, his digital wallet was compromised, resulting in the loss of those funds. The SEC accused Sewell and his company, Rockwell Capital Management, of fraud. A settlement was reached in which they neither admitted nor denied the charges.
The SEC’s Ongoing Scrutiny of Cryptocurrency Practices
This enforcement action is part of the SEC’s continued efforts to crack down on fraudulent activities in the cryptocurrency industry. SEC Chair Gary Gensler has consistently warned investors about the prevalence of fraud in this space. Recently, members of Congress introduced a resolution seeking to revoke an accounting rule that imposes restrictions on banks holding clients’ crypto assets.
Hot Take: Founder of American Bitcoin Academy Faces SEC Charges for Fraudulent Hedge Fund Scheme
The founder of American Bitcoin Academy, Brian Sewell, has been charged with crypto fraud by the Securities and Exchange Commission (SEC). Sewell allegedly convinced his students to invest in a hedge fund that would use AI and cryptocurrency-related trading strategies to generate profits. However, instead of launching the fund, Sewell converted the investments into Bitcoin, which were later lost due to a compromised digital wallet. The SEC accused Sewell and his company, Rockwell Capital Management, of fraud. This case is part of the SEC’s ongoing efforts to combat fraudulent activities in the cryptocurrency industry. It serves as a reminder to investors to exercise caution and thoroughly research investment opportunities in the crypto space.
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