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# Crypto Trading Instructor Faces Charges for Misleading Students

## The Allegations Against Brian Sewell

A crypto trading instructor is facing charges from the U.S. Securities and Exchange Commission (SEC) for allegedly misleading 15 students into investing a combined $1.2 million in a hedge fund that never materialized. Brian Sewell, founder of Rockwell Capital Management, is accused of taking investors’ funds without ever launching the promised investment fund, despite claiming to use cutting-edge technology.

According to a recent statement from the SEC, Sewell allegedly encouraged investors to place funds into a non-existent hedge fund from early 2018 to mid-2019. The complaint alleges that Sewell received approximately $1.2 million from 15 students but never launched the fund nor executed the trading strategies he advertised to investors.

## False Promises of AI and Machine-Learning Technology

Sewell allegedly promised to use artificial intelligence (AI) and machine-learning technology to maximize investor returns, but ultimately left his students’ funds parked in Bitcoin (BTC). Eventually, his crypto wallet was hacked, leading to the loss of their entire investment.

## SEC’s Warning to Scammers in Crypto Industry

The SEC issued a broader warning to scammers in the crypto industry, stating its intention to take action against those exploiting the industry’s hype. The regulator emphasized its commitment to holding accountable those who claim to use attention-grabbing technologies to attract and defraud investors.

## Restitution and Penalties

Rockwell Capital Management has agreed to return the $1.2 million back to investors along with prejudgment interest of approximately $402,000. If the court approves the settlement, Sewell himself will pay a civil penalty of $223,229.

## CFTC’s Warning to Crypto Investors

This case comes after the Commodities and Futures Trading Commission (CFTC) warned crypto investors to avoid being lured by exaggerated promises from AI trading bots. The CFTC highlighted the dangers of relying on bots, trade signal algorithms, crypto-asset arbitrage algorithms, and other AI-assisted technology that promise impressive yields.

## How AI legalese decoder Can Help

In situations like this, the AI legalese decoder can play a vital role in identifying misleading or fraudulent claims made by individuals or entities in the crypto industry. By using advanced AI technology, the decoder can analyze legal documents, statements, and disclosures to flag potentially deceptive practices. This can help investors and regulators to identify warning signs of fraudulent behavior, thereby mitigating the risk of financial loss and holding accountable those who engage in deceptive practices.

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