OMG NEWS OF THE DAY
Crypto Academy Teacher Defrauds Students of $1.2 Million
The US Securities and Exchange Commission (SEC) has accused Brian Sewell, an instructor at a crypto academy, of defrauding 15 students of approximately $1.2 million. Sewell convinced students to invest in the Rockwell Fund, a hedge fund that promised advanced technologies like artificial intelligence for profitable returns. However, the fund was never launched, and all invested money, kept in Bitcoin, was lost due to a wallet hack. Sewell’s company, Rockwell Capital Management, will pay over $1.6 million in restitution, and Sewell faces a civil penalty of $223,229.
We allege that Sewell defrauded students in his online American Bitcoin Academy of over a million dollars through a series of lies about investment opportunities in his purported crypto hedge fund. Among other things, he falsely claimed that his investment strategies would be guided by his own ‘artificial intelligence’ and ‘machine learning’ technology which, like the fund itself, never existed. Whether it’s AI, crypto, DeFi or some other buzzword, the SEC will continue to hold accountable those who claim to use attention-grabbing technologies to attract and defraud investors.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement
Hacker Claims Access to Subpoena Information from Major Platforms
A hacker is claiming access to a law enforcement request account, “KodexGlobal,” allowing them to issue emergency data requests (EDRs) to major platforms including Discord, Binance, and Coinbase. The hacker is reportedly selling this access for $5,000 or $300 per EDR on BreachForums.
This poses a significant threat as it could lead to identity theft and financial loss, especially for crypto users. While Binance denies a system breach, the abuse of such a system could have severe consequences, and authorities are investigating this potential security breach.
South Korea’s Regulator Seeks Insights on Spot Bitcoin ETFs from SEC Chief
The Financial Supervisory Service (FSS), South Korea’s chief financial regulator, plans to discuss spot Bitcoin exchange-traded funds (ETFs) with the United States Securities and Exchange Commission (SEC) Chief Gary Gensler. The FSS Chief, Lee Bok-Hyun, aims to visit major financial markets, including New York, to explore various aspects of South Korean financial markets. The meeting with Gensler is set to cover digital assets and spot Bitcoin ETFs, influenced by the recent SEC approval of 11 spot BTC ETFs. South Korea, often following U.S. regulatory trends, is reevaluating its regulations on spot Bitcoin ETF trade approval.
TWEETS OF THE DAY
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