Crypto Trading Course Founder Scams Students Out of $1 Million

According to Bloomberg, the founder of the American Bitcoin Academy, an online crypto trading course, scammed students out of more than $1 million by persuading them to invest in a fake hedge fund. From December 2017 through April 2018, Brian Sewell allegedly solicited investments for the Rockwell Fund, which would invest in cryptocurrencies. Instead of launching the fund, Sewell converted the investments into Bitcoin, which he lost when the wallet he was using was hacked. The SEC said in a news release announcing the settled case that Sewell also deceived investors about the fund’s existence by sending them fake monthly account statements. Sewell’s alleged fraud scheme ultimately cost 15 students about $1.2 million, according to the regulator. "Whether it’s AI, crypto, DeFi or some other buzzword, the SEC will continue to hold accountable those who claim to use attention-grabbing technologies to attract and defraud investors," said the SEC. Sewell and his company, Rockwell Capital Management, agreed to settle with the regulator, without admitting or denying the allegations. As part of the deal, Rockwell Capital agreed to pay $1.6 million and Sewell, more than $200,000. Sewell, who is listed as the media contact for the firm, didn’t immediately respond to a request for comment. He lived in Utah before relocating to Puerto Rico, according to the SEC complaint. The enforcement action is the latest in a string of cases the agency has brought in connection to digital assets. SEC Chair Gary Gensler has said that the regulator will continue to crack down on fraud in the cryptocurrency space.