SEC Accuses Bitcoin Academy Founder of $1.2 Million Fraud
The founder of the American Bitcoin Academy and his company Rockwell Capital Management have been accused by the US Securities and Exchange Commission (SEC) of fraud.
The SEC states that 15 students who enrolled in the online course to learn about trading digital assets were scammed out of $1.2 million.
According to the SEC, from early 2018 to mid-2019, Sewell solicited hundreds of online students to invest in the hedge fund Rockwell Fund. He allegedly made false promises of using artificial intelligence and cryptocurrencies to generate profits.
However, it was discovered that the fund was never launched and the trading operations described in the advertisement never took place. Instead, the funds invested by students were stolen when Sewell’s digital wallet was hacked.
Gurbir Grewal, the SEC’s director of enforcement, stated:
“Whether it’s AI, cryptocurrencies, DeFi or some other buzzword, the SEC will continue to hold accountable those who use attention-grabbing technologies to defraud investors.”
The defendants have agreed to settle the charges without admitting or denying the allegations made by the SEC. In addition to the permanent injunction, Rockwell Capital Management will pay $1.6 million and Sewell will pay $223,229.
