Yet another lawsuit involving digital assets has been brought forth by the SEC. The leading regulatory authority of Wall Street disclosed that an entrepreneur from the United States, specializing in cryptocurrencies, has consented to resolve allegations of deception related to an internet course he advertised, named the “American Bitcoin Academy”. On Friday, the SEC accused Brian Sewell and Rockwell Capital Management of convincing students to pour money into a supposed AI-driven cryptocurrency hedge fund with the promise of large profits. When the fund collected $1.2 million from 15 students, the 51-year-old Sewell and his firm did not proceed with the fund’s launch, instead keeping the money as Bitcoin. The SEC’s findings reveal that the Bitcoin was later stolen during a cybersecurity breach, resulting in the total loss of the students’ investment. The SEC’s legal filing charges Sewell with misappropriating investor funds by converting them into Bitcoin, which was then irrecoverably lost in a digital theft. The complaint accused Sewell of hiding the cyber theft and the subsequent financial losses from the investors to avoid the discovery of the fraudulent activities. Sewell consented to a settlement of the claims while neither admitting nor refuting the accusations made against him. Moreover, Rockwell Capital Management, as a party to the case, has been ordered to pay back earnings and pre-judgment interest amounting to $1,602,089. In addition, Sewell has agreed to pay a fine of $89,229 as imposed by the regulatory authority. Gurbir S. Grewal, the head of the SEC’s enforcement division, stated, “Our allegations point to Sewell deceiving students of his online American Bitcoin Academy, misleading them about investment chances in his ostensible cryptocurrency hedge fund, which resulted in over a million dollars in losses.” He also mentioned that Sewell purportedly informed students about the potential earnings from his digital course on cryptocurrency, the American Bitcoin Academy, which he claimed would be lucrative. However, this course turned out to be non-existent. “Regardless of the latest trends such as artificial intelligence, cryptocurrencies, decentralized finance, or any other popular term, the Securities and Exchange Commission remains committed to prosecuting individuals who allegedly deploy these high-profile tech advancements to deceive and swindle investors,” cautioned Grewal. – Revised by Ryan Ozawa. Keep informed about cryptocurrency developments with daily summaries delivered to your email. Enter Your Email Address.