Summary
The founder of an online crypto course, Brian Sewell, has been charged by the Securities and Exchange Commission (SEC) for targeting his students to invest in a crypto hedge fund that would use artificial intelligence (AI) to generate returns. However, Sewell ended up losing the investors’ funds after his digital wallet was hacked. The SEC stated that Sewell falsely claimed to have degrees in data science from prestigious universities and to have had prior experience managing a hedge fund. Sewell and his firm, Rockwell Capital Management, settled the charges without admitting or denying them. Rockwell Capital Management will pay $1.6 million, and Sewell will pay $223,229.
Key Points
1. The founder of an online crypto course targeted his students to invest in a crypto hedge fund that would use artificial intelligence to generate returns, according to charges brought by the Securities and Exchange Commission.
2. The founder, who had held onto investors’ money in bitcoin, subsequently lost those funds after his digital wallet was hacked.
3. The founder encouraged his students to invest in the Rockwell Fund, but never launched the fund, despite receiving about $1.2 million from 15 students.