Crypto News– The Securities and Exchange Commission (SEC) has charged the founder of an online cryptocurrency course for allegedly targeting students to invest in a crypto hedge fund that he claimed would utilize artificial intelligence (AI) for generating returns. According to the SEC, the founder, Brian Sewell, 51, and his firm Rockwell Capital Management, were charged with fraud. Sewell allegedly encouraged his students to invest in the Rockwell Fund, promising AI-driven strategies, but never launched the fund.
SEC Charges Online Crypto Course Founder for Deceptive Hedge Fund Scheme Targeting Students
Sewell reportedly received around $1.2 million from 15 students but lost the funds when his digital wallet was hacked. Gurbir S. Grewal, director of the SEC’s Division of Enforcement, stated that Sewell falsely claimed the use of AI and machine learning technologies that never existed. The SEC accused Sewell of sending misleading pitch decks to students, containing misrepresentations and omissions about the fund.
Additionally, Sewell allegedly falsely claimed to have earned degrees in data science from John Hopkins University and Stanford University, and misrepresented his experience managing a crypto hedge fund. The SEC’s action underscores its commitment to holding accountable those who exploit buzzwords like AI and cryptocurrency to attract and defraud investors.