Crypto Mentor Accused of Misleading Students into Fraud
Key Takeaways
- A cryptocurrency trading mentor reportedly misled students into investing $1.2 million in a non-existent hedge fund.
- The fund was planned to be strengthened with AI and machine learning technology, but was lost due to hacking.
- SEC warns to take strict action against fraud in cryptocurrency industry, involved parties agree to settlement including repayment and civil penalties.
Recently, a scandal broke out in the cryptocurrency community. Cryptocurrency trading instructor under legal investigation for allegedly defrauding students.
Brian Sewell, the mastermind behind the scheme and founder of Rockwell Capital Management, reportedly convinced his followers: Investing money in a hedge fund that doesn’t exist Between early 2018 and mid 2019.
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The U.S. Securities and Exchange Commission (SEC) said Sewell, who moved to Puerto Rico after living in Hurricane, Utah, Received $1.2 million from students. Unfortunately he Neither raised the promised funds I haven’t even implemented a trading strategy. He advertised.
Contrary to his conviction that he would use artificial intelligence (AI) and machine learning to maximize return on investment, Sewell Leave investor’s funds inactive With Bitcoin (BTC).
this fruit It ended in a security breach. Where Sewell’s digital wallet was hacked total loss of invested capital.
The SEC’s complaint highlights these unfortunate events and states: Promised technical safeguards were insufficient or not implemented at all..
This incident prompted the SEC to issue a stern warning to the cryptocurrency market about the consequences of fraudulent activities.
The Committee has made it clear that it remains vigilant and prepared. Take action against those who misuse the hype surrounding emerging technologies..
Whether it’s AI, cryptocurrency, DeFi, or other buzzwords, the SEC will continue to hold accountable those who allegedly use attention-grabbing technologies to lure and defraud investors.
In an effort to improve the situation, Rockwell Capital Management agreed: Refund lost $1.2 million with defrauded investors Additional $402,000 in pre-judgment interest.. Additionally, pending court approval of the settlement, Sewell must: Pay civil fines totaling $223,229.
This case serves as a warning to the cryptocurrency community, highlighting the risks of fraudulent investment schemes and the importance of regulatory oversight to protect investors.
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