- Crypto trading instructor Brian Sewell is facing charges for deceiving students into investing $1.2 million in a fake hedge fund he claimed would use AI for big profits
- Sewell encouraged 15 students to invest in the non-existent fund from 2018-2019, promising advanced algorithms, but he never actually executed any trading strategies
- The SEC alleges Sewell’s Bitcoin wallet containing the $1.2 million investment was hacked; Sewell has agreed to return the funds to investors
A crypto trading course instructor is facing charges for deceiving his students into investing $1.2 million in a fake hedge fund. Brian Sewell claimed he would use cutting-edge AI and machine learning to generate big returns, but never launched the fund.
Misleading Claims
Sewell encouraged 15 students to invest in the non-existent hedge fund from early 2018 to mid-2019. He promised to use advanced algorithms and technology like artificial intelligence to maximize profits. However, he left the $1.2 million in a Bitcoin wallet without executing any trading strategies.
The Missing Funds
When Sewell’s Bitcoin wallet was eventually hacked, the entire $1.2 million investment from students was stolen. The SEC alleges the bitcoin was looted when his digital wallet was compromised. Sewell and his company Rockwell Capital Management have agreed to return the $1.2 million to investors.
SEC Warning
The SEC issued a warning about scammers exploiting hype around crypto, AI, DeFi and other buzzwords. They stated they will continue holding accountable those who make misleading claims just to attract investors. This case highlights the need for caution when investing based on lofty promises alone.
