The United States Securities and Exchange Commission (SEC) has accused the founder of the online course American Bitcoin Academy, Brian Sewell, and his company Rockwell Capital Management of fraud. According to the SEC, Sewell defrauded 15 students who wanted to learn digital asset trading, totaling $1.2 million.

From early 2018 to mid-2019, Sewell encouraged online students to invest in the Rockwell Fund hedge fund, promising to use artificial intelligence and cryptocurrencies to generate profits. However, according to the regulator, he never launched the fund and did not conduct the trading operations advertised to investors. The funds invested by the students were stolen during the hacking of his digital wallet.

Gurbir Grewal, the SEC's Director of Enforcement, stated that the agency will continue to hold accountable those who use eye-catching technologies to defraud investors. The accused agreed to settle the charges, neither admitting nor denying the SEC's claims. Rockwell Capital Management will pay $1.6 million, and Sewell will pay $223,229.

In January, the SEC also accused the cryptocurrency project HyperFund of defrauding investors of $1.7 billion. Earlier, the CFTC warned of fraud using artificial intelligence.