The Securities and Exchange Commission has filed fraud charges against American Bitcoin Academy operated by Rockwell Capital Management and founder Brian Sewel.
The company and Sewel have agreed to settle the charges without admitting or denying the allegations.
Rockwell Capital Management has also agreed to pay disgorgement and prejudgment interest totaling $1,602,089, and has Sewell agreed to a civil penalty of $223,229.
The settlement is subject to court approval.
According to the complaint, the company taught crypto trading classes. Sewell apparently encouraged hundreds of his online students to invest in the Rockwell Fund, which he claimed would use cutting-edge technology like artificial intelligence and trading strategies involving crypto to generate returns for investors.
The complaint alleges that Sewell received approximately $1.2 million from 15 students but never launched the fund, instead investing the money in bitcoin.
The complaint also alleges that the Bitcoin was stolen when Sewell’s digital wallet was hacked.\
