In a new foray into the world of cryptocurrencies, the United States Securities and Exchange Commission (SEC) announced a lawsuit against the founder of Bitcoin Academy, Brian Sewell. The agency accuses Sewell of running an online fraudulent crypto scheme that cost the students $1.2 million.

According to the SEC’s complaint, this alleged fraud took place between early 2018 and mid-2019 and affected 15 students. Sewell, along with his firm Rockwell Capital Management, agreed to settle the fraud charges.

Sewell’s modus operandi was to encourage his online students to invest in the Rockwell Fund, a hedge fund he said he would launch. He promised that the fund would use advanced technologies such as artificial intelligence and rely on crypto-asset trading strategies to generate returns for investors.

However, the lawsuit alleges that Sewell never launched the fund or implemented the trading strategies for which he raised the funds from the 15 students. Instead, he kept the money invested in bitcoin. Subsequently, the alleged fraudster claimed that the money had been stolen from his wallets by hackers.

The SEC warns investors to check the history of anyone who sells them an investment and to independently investigate investment opportunities. In addition, it has issued warnings to investors about frauds promoting new technologies.

K. Tovar

Source: Criptotendencia

(Reference image: @Crypto_TownHall, X)

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