The U.S. Securities and Exchange Commission (SEC) has filed charges against the founder of the American Bitcoin Academy online cryptocurrency trading course. The main person involved is American Brian Sewell and his company Rockwell Capital Management, according to SEC documents.
Brian Sewell is charged with "fraud" and "calling for investment in the yet-to-be-launched hedge fund Rockwell Fund in the period from 2018 to mid-2019" with promises of "using artificial intelligence (AI) and cryptocurrencies to make a profit." The estimated amount of funds received from defrauded investors is estimated at $1.2 million.
Sewell, as the American regulator believes, deliberately misled the students of the American Bitcoin Academy by sending a presentation to the course participants, in which it was reported that Sewell's own de facto non-existent "artificial intelligence" would be used to manage the new fund. Also, according to the SEC, the document contained many unreliable facts about the planned launch of the Rockwell Fund hedge fund.
According to Brian Sewell, he converted the funds received into bitcoins, which he subsequently lost due to hacking of his digital wallet.
The SEC filed a lawsuit in Delaware against the defendants for violations of the provisions of the Securities Market Act. The defendants recognize the legality of the upcoming court decisions in their case. Rockwell Capital Management has agreed to return $1.2 million to investors, as well as interest in the amount of approximately $402 thousand. In addition, Brian Sewell is ready to pay a fine of $ 223 thousand.