Utah Man Sentenced to Three Years for $2.9M Crypto Fraud Scheme
A Utah man has been sentenced to three years in federal jail for operating a crypto-related fraud scheme that value traders almost $3 million whereas additionally working an unlicensed cash-to-crypto enterprise that dealt with tens of millions of {dollars}, US prosecutors said Thursday.
Key Takeaways:
- A Utah man was sentenced to three years in jail for a crypto fraud scheme that value traders almost $3 million.
- The courtroom ordered greater than $3.8 million in restitution to victims and federal authorities.
- Prosecutors stated he additionally ran an unlicensed cash-to-crypto enterprise that moved over $5.4 million.
Brian Garry Sewell, 54, was sentenced to 36 months in jail adopted by three years of supervised launch after pleading responsible to wire fraud.
In a separate however associated case, he additionally admitted to working an unlicensed money-transmitting enterprise that transformed massive volumes of money into cryptocurrency for third-party purchasers, together with people concerned in fraud and drug trafficking.
Court Orders $3.8M Restitution in Utah Crypto Fraud Case
The sentences will run concurrently, leading to a complete jail time period of three years, in accordance 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 quantity contains greater than $3.6 million to defrauded traders, a mortgage lender and a credit score union, together with $217,727 to the US Department of Homeland Security.
Prosecutors stated Sewell’s funding fraud scheme ran from December 2017 by way of April 2024.
During that interval, he obtained cash and cryptocurrency from at the very least 17 traders by misrepresenting his expertise, schooling and skill to generate constant, high returns.
Authorities stated the promised features by no means materialized, leaving victims with vital losses.
“Sewell preyed on his victims by mendacity about his expertise and promising returns he couldn’t ship,” stated Federal Bureau of Investigation Salt Lake City Special Agent in Charge Robert Bohls, including that households have been left to take up the monetary injury.
Alongside the funding fraud, Sewell operated Rockwell Capital Management between March and September 2020 as an unlicensed money-transmitting enterprise.
Prosecutors stated the operation transformed greater than $5.4 million in bulk money into cryptocurrency, charged transaction charges, and failed to adjust to federal anti-money laundering registration and reporting necessities.
Crypto Crime Hits Record $154B in 2025, Chainalysis Says
The sentencing comes as crypto-related crime stays a rising concern. According to Chainalysis, illicit cryptocurrency addresses received a record $154 billion in 2025, a pointy improve from the yr earlier than.
In one other case, US prosecutors have charged a 23-year-old Brooklyn resident, Ronald Spektor, with stealing roughly $16 million in cryptocurrency from round 100 Coinbase customers by way of an alleged phishing and social engineering scheme.
According to the Brooklyn District Attorney’s Office, Spektor posed as a Coinbase worker and contacted victims claiming their funds have been at instant danger, pressuring them to switch crypto to wallets he managed.
Authorities stated the scheme relied on panic techniques somewhat than technical hacks. Operating below the web alias “lolimfeelingevil,” Spektor allegedly warned victims of imminent theft to override skepticism and pressure fast choices.
Once funds have been transferred, prosecutors say he tried to cover their origin by routing property by way of crypto mixers, token swaps and on-line playing platforms.
Spektor was arraigned on 31 costs, together with first-degree grand larceny and cash laundering, following a year-long investigation.
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