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SEC Exposes the Myth of cryptogurus: a Scam in the World of digital investments
SEC Accuses "Cryptotrener" of a $1.2 Million Hedge Fund Fraud Scheme
According to statements from the U.S. Securities and Exchange Commission (SEC), the founder of Rockwell Capital Management, Brian Sewell, received approximately $1.2 million in cash from his students between early 2018 and mid-2019. These funds were supposed to be invested in a cryptocurrency hedge fund with promises of high returns. However, instead of launching the fund, Sewell appropriated the money for his own use.
The SEC complaint mentions that Sewell, who lived in Hurricane, Utah, received funds, but did not launch the fund and did not use the funds to trade using the advertised strategies. After these events, he moved to Puerto Rico.
Brian Sewell touted his approach to investing, promising the use of artificial intelligence and machine learning technologies to increase the profits of his clients. Eventually, he purchased bitcoins and stored them in a wallet, which was later hacked and the funds were stolen, resulting in a complete loss of investment for depositors.
The court is considering the possibility of concluding a settlement agreement between Sewell and the investors. If the agreement is approved, Sewell will have to return to investors their initial investment of $1.2 million, pay $402,000 in interest and pay a fine of $223,229.
The case is part of a recent effort by U.S. law enforcement agencies to combat cryptocurrency fraud. Earlier, American prosecutors charged the founder of the HyperFund crypto scheme with fraud.
