Utah Man Sentenced to Three Years for $2.9 Million Crypto Fraud Scheme

A Utah man has received a three-year sentence in federal prison for orchestrating a fraudulent cryptocurrency scheme that swindled investors out of nearly $3 million. Additionally, he operated an unlicensed cash-to-crypto business that handled millions of dollars, as reported by US prosecutors on Thursday.

Key Takeaways:

A Utah man has been sentenced to three years in prison due to a crypto fraud scheme that cost investors nearly $3 million.
The court mandated over $3.8 million in restitution for victims and federal authorities.
He also ran an unlicensed cash-to-crypto operation that dealt over $5.4 million.

Brian Garry Sewell, age 54, was sentenced to 36 months in prison followed by three years of supervised release after pleading guilty to wire fraud.

In a case closely related to this, he acknowledged operating an unlicensed money-transmitting business, which converted substantial amounts of cash into cryptocurrency for clients, including individuals implicated in fraud and drug trafficking activities.

Utah Man Sentenced to Three Years for $2.9M Crypto Fraud Scheme

Court Orders $3.8 Million in Restitution for Victims

The sentences will be served concurrently, resulting in a total of three years behind bars, according to the US Attorney’s Office for the District of Utah.

US District Court Judge Ann Marie McIff Allen ordered Sewell to pay a total of $3,822,909 in restitution. This sum includes over $3.6 million owed to deceived investors, a mortgage lender, and a credit union, in addition to $217,727 to the US Department of Homeland Security.

Prosecutors stated that Sewell's fraudulent investment scheme persisted from December 2017 to April 2024. Throughout this timeframe, he amassed money and cryptocurrency from at least 17 investors by falsely portraying his qualifications, education, and ability to deliver steady, substantial returns.

Authorities revealed that the expected profits never materialized, leaving numerous victims facing significant financial losses.

"Sewell exploited his victims by fabricating his experience and pledging returns he was unable to provide," said Robert Bohls, Special Agent in Charge at the Federal Bureau of Investigation in Salt Lake City, emphasizing the considerable financial burden placed on families.

In tandem with the investment fraud, Sewell operated Rockwell Capital Management from March to September 2020 as an unlicensed money-transmitting business. Prosecutors indicated that this operation converted over $5.4 million in bulk cash into cryptocurrency, imposing transaction fees while failing to adhere to federal anti-money laundering regulations and reporting requirements.

Rising Concerns Over Crypto Crime

This sentencing occurs against a backdrop of increasing worries surrounding crypto-related crime. According to Chainalysis, illicit cryptocurrency addresses received a staggering $154 billion in 2025, marking a significant rise from the previous year.

In another case, US prosecutors have charged Ronald Spektor, a 23-year-old resident of Brooklyn, with stealing approximately $16 million in cryptocurrency from around 100 Coinbase users through a phishing and social engineering scheme.

The Brooklyn District Attorney’s Office reports that Spektor impersonated a Coinbase employee and reached out to victims, claiming their funds were at immediate risk, pressuring them to transfer their cryptocurrency to wallets under his control.

Authorities noted that his scheme depended more on inducing panic rather than actual technical hacking. Operating online under the alias "lolimfeelingevil," Spektor allegedly warned victims of imminent theft to overcome their skepticism and make hurried decisions.

Once the funds were transferred, prosecutors claim he attempted to disguise their source by routing the assets through crypto mixers, token swaps, and online gambling platforms.

Spektor now faces 31 charges, including first-degree grand larceny and money laundering, after a year-long investigation.