- American Bitcoin Academy accused of defrauding students of $1M through a fake hedge fund.
- Brian Sewell converted investments to Bitcoin, lost funds due to hacking, and sent fake account statements.
- SEC investigation results in settlement for financial restitution and highlights risks in the cryptocurrency market.
In the fast-paced world of cryptocurrencies and digital assets, the promise of lucrative returns has attracted both seasoned investors and those new to the market. However, not all ventures in this space are legitimate, as highlighted by the recent case involving the American Bitcoin Academy. This online crypto trading course, founded by Brian Sewell, stands accused of defrauding its students out of more than $1 million through an elaborate scheme involving a fake hedge fund, deceptive statements, and the subsequent loss of investments due to hacking. This article delves into the details of the scam, shedding light on the actions taken by Sewell and the consequences faced by him and his company.
The Rockwell Fund: A Deceptive Investment Opportunity
Between December 2017 and April 2018, Brian Sewell, the founder of the American Bitcoin Academy, allegedly engaged in a fraudulent scheme by soliciting investments for the Rockwell Fund. The fund was purported to employ unique strategies and cutting-edge tools, including artificial intelligence, to invest in digital assets. Sewell enticed students with the allure of attractive returns and the opportunity to be part of an exclusive investment venture. However, unbeknownst to the unsuspecting investors, the Rockwell Fund was nothing more than a fabrication.
Misappropriation and Deception
Rather than launching the promised hedge fund, Sewell proceeded to convert the investments he received into Bitcoin. Tragically, he lost the entirety of these funds when the wallet he utilized was compromised by hacking. To conceal his actions and prolong the deception, Sewell sent fake monthly account statements to the investors, portraying a false sense of security and growth. This deliberate manipulation and misappropriation of funds ultimately led to substantial financial losses for the victims involved.
The Fallout: Students Bear the Brunt
The Securities and Exchange Commission (SEC) stepped in to investigate the fraudulent activities of Brian Sewell and the American Bitcoin Academy. The regulator determined that 15 students had collectively lost approximately $1.2 million due to Sewell’s deceitful actions. This case serves as a stark reminder of the risks associated with investing in the cryptocurrency market and the importance of thorough due diligence when assessing investment opportunities.
Accountability and Settlement
Recognizing the severity of the situation, Brian Sewell and his company, Rockwell Capital Management, reached a settlement with the SEC. It is important to note that while the settlement does not require Sewell or his company to admit guilt, it does indicate their willingness to resolve the matter without further litigation. As part of the settlement, Rockwell Capital agreed to pay $1.6 million, while Sewell himself agreed to pay over $200,000. This financial restitution aims to compensate the victims and serves as a measure of accountability for Sewell and his company.
Brian Sewell: A Media Contact Goes Silent
Despite being listed as the media contact for the American Bitcoin Academy, Brian Sewell has remained silent in response to requests for comment on the allegations. Prior to this incident, Sewell resided in Utah but later relocated to Puerto Rico. The SEC complaint highlights this information as it seeks to establish Sewell’s background and whereabouts during the course of the fraudulent activities.
SEC’s Vigilance in the Crypto Space
This enforcement action by the SEC against the American Bitcoin Academy is part of a broader effort to crack down on fraudulent activities in the digital asset realm. SEC Chair Gary Gensler has consistently cautioned investors about the prevalence of scams and fraudulent schemes within the cryptocurrency space. Gensler’s warnings underscore the need for individuals to exercise caution and conduct thorough research before engaging in any investment activities involving cryptocurrencies.
Conclusion
The case of the American Bitcoin Academy and its founder, Brian Sewell, serves as a cautionary tale for investors venturing into the world of cryptocurrencies. This unfortunate incident highlights the importance of conducting due diligence and exercising caution when considering investment opportunities, particularly in an industry that is still evolving and susceptible to fraudulent activities. The SEC’s enforcement action against Sewell and Rockwell Capital Management demonstrates their commitment to protecting investors and holding accountable those who engage in deceptive practices. As the crypto space continues to evolve, it is crucial for investors to remain vigilant and rely on trusted sources of information to navigate this complex and rapidly changing landscape.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
