The US SEC has accused 51-year-old founder of the American Bitcoin Academy, Brian Sewell, and his company, Rockwell Capital Management, of defrauding students. The defendants claimed that their hedge fund would use complex tools such as artificial intelligence to generate returns. This fraudulent scheme resulted in 15 students losing $1.2 million.

According to the SEC's statement, Rockwell Capital Management will pay $1.6 million and Sewell will pay $223,229 to settle the SEC's charges.