A Utah man has been sentenced to three years in federal prison for running a crypto-related fraud scheme that cost investors nearly $3 million while also operating an unlicensed cash-to-crypto business that handled millions of dollars, US prosecutors said Thursday.
Key Takeaways:
A Utah man was sentenced to three years in prison for a crypto fraud scheme that cost investors nearly $3 million. The court ordered more than $3.8 million in restitution to victims and federal authorities. Prosecutors said he also ran an unlicensed cash-to-crypto business that moved over $5.4 million.Brian Garry Sewell, 54, was sentenced to 36 months in prison followed by three years of supervised release after pleading guilty to wire fraud.
In a separate but related case, he also admitted to operating an unlicensed money-transmitting business that converted large volumes of cash into cryptocurrency for third-party clients, including individuals involved in fraud and drug trafficking.
Court Orders $3.8M Restitution in Utah Crypto Fraud Case
The sentences will run concurrently, resulting in a total prison term of three years, according to the US Attorney’s Office for the District of Utah.
US District Court Judge Ann Marie McIff Allen ordered Sewell to pay $3,822,909 in restitution.
That amount includes more than $3.6 million to defrauded investors, a mortgage lender and a credit union, along with $217,727 to the US Department of Homeland Security.
Prosecutors said Sewell’s investment fraud scheme ran from December 2017 through April 2024.
During that period, he obtained money and cryptocurrency from at least 17 investors by misrepresenting his experience, education and ability to generate consistent, high returns.
Authorities said the promised gains never materialized, leaving victims with significant losses.
“Sewell preyed on his victims by lying about his experience and promising returns he could not deliver,” said Federal Bureau of Investigation Salt Lake City Special Agent in Charge Robert Bohls, adding that families were left to absorb the financial damage.
Alongside the investment fraud, Sewell operated Rockwell Capital Management between March and September 2020 as an unlicensed money-transmitting business.
Prosecutors said the operation converted more than $5.4 million in bulk cash into cryptocurrency, charged transaction fees, and failed to comply with federal anti-money laundering registration and reporting requirements.
Crypto Crime Hits Record $154B in 2025, Chainalysis Says
The sentencing comes as crypto-related crime remains a growing concern. According to Chainalysis, illicit cryptocurrency addresses received a record $154 billion in 2025, a sharp increase from the year before.
In another case, US prosecutors have charged a 23-year-old Brooklyn resident, Ronald Spektor, with stealing roughly $16 million in cryptocurrency from around 100 Coinbase users through an alleged phishing and social engineering scheme.
According to the Brooklyn District Attorney’s Office, Spektor posed as a Coinbase employee and contacted victims claiming their funds were at immediate risk, pressuring them to transfer crypto to wallets he controlled.
Authorities said the scheme relied on panic tactics rather than technical hacks. Operating under the online alias “lolimfeelingevil,” Spektor allegedly warned victims of imminent theft to override skepticism and force quick decisions.
Once funds were transferred, prosecutors say he attempted to hide their origin by routing assets through crypto mixers, token swaps and online gambling platforms.
Spektor was arraigned on 31 charges, including first-degree grand larceny and money laundering, following a year-long investigation.
The post Utah Man Sentenced to Three Years for $2.9M Crypto Fraud Scheme appeared first on Cryptonews.
