The U.S. Securities and Exchange Commission (SEC) has continued its assertive crackdown on cryptocurrency-related frauds, taking action beyond popular exchanges or tokens. In its latest case, the SEC has charged Brian Sewell and his company Rockwell Capital Management with defrauding students through an online crypto trading course, the American Bitcoin Academy. Sewell stands accused of misleading his students into investing in a non-existent hedge fund, leading to a collective loss of $1.2 million.
Crackdown on Fraudulent Crypto Trading Course
Sewell’s scheme, operational from early 2018 to mid-2019, involved convincing students to invest in the so-called Rockwell Fund. Sewell promised high returns using artificial intelligence and crypto assets. However, despite collecting substantial sums from students, the fund was never launched, and the supposed cutting-edge technology did not exist.
SEC Exposes False Promises of Returns and Technology
The SEC’s Enforcement Division, under Director Gurbir S. Grewal, has revealed Sewell’s deceptive tactics. Sewell falsely claimed that his ‘artificial intelligence’ and ‘machine learning’ technology would guide investment strategies. These technologies, much like the fund itself, were found to be fabrications, leading to the defrauding of over a million dollars from students seeking education in cryptocurrency trading.
The SEC’s pursuit reflects its commitment to protect investors and maintain fair, orderly, and efficient markets. The regulator’s latest actions against fraudulent crypto ventures reiterate this stance, potentially serving as a deterrent for future misconduct in the rapidly evolving digital asset space.
As the SEC continues to monitor the crypto industry, this case serves as a cautionary tale for investors and emphasizes the importance of thorough due diligence before investing in such ventures.