A Utah man was sentenced to three years in federal prison for running a crypto-related fraud scheme that cost investors nearly $3 million, while also running an unlicensed crypto money transfer business that processed millions of dollars, U.S. prosecutors announced Thursday.
Key points to remember:
- 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 the victims and federal authorities.
- Prosecutors said he also ran an unlicensed cryptocurrency money transfer business that transferred more than $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 transfer business that converted large amounts of money into cryptocurrency for third-party clients, including people involved in fraud and drug trafficking.
Court Orders $3.8 Million Restitution in Utah Crypto Fraud Case
The sentences will run concurrently, resulting in a total prison term of three years, according to the U.S. Attorney’s Office for the District of Utah.
U.S. District Court Judge Ann Marie McIff Allen ordered Sewell to pay $3,822,909 in restitution.
This amount includes more than $3.6 million paid to defrauded investors, a mortgage lender and a credit union, as well as $217,727 paid to the U.S. Department of Homeland Security.
Prosecutors said Sewell’s investment fraud scheme ran from December 2017 to April 2024.
During this period, he obtained money and cryptocurrencies from at least 17 investors by misrepresenting his experience, education, and ability to generate high and consistent 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 Special Agent in Charge of the Federal Bureau of Investigation in Salt Lake City Robert Bohls, adding that the families had to absorb the financial damages.
Alongside the investment fraud, Sewell operated Rockwell Capital Management between March and September 2020 as an unlicensed money transfer business.
Prosecutors said the operation converted more than $5.4 million in cash into cryptocurrency, charged transaction fees and failed to comply with federal anti-money laundering registration and reporting requirements.
Crypto Crime Hits Record $154 Billion in 2025, According to Chainalysis
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 previous year.
In a separate case, U.S. prosecutors charged Ronald Spektor, a 23-year-old Brooklyn resident, with stealing approximately $16 million in cryptocurrency from about 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 in immediate danger, 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 pseudonym “lolimfeelingevil,” Spektor allegedly warned victims of impending theft in order to overcome their skepticism and force quick decisions.
Once the funds were transferred, prosecutors say he attempted to hide their origin by routing the assets through crypto mixers, token exchanges and online gaming platforms.
Spektor was arraigned on 31 charges, including first-degree robbery and money laundering, following a year-long investigation.
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