What Did Federal Prosecutors Prove?
A Southern Utah man has been sentenced to three years in federal prison after prosecutors proved he defrauded cryptocurrency investors and ran an unlicensed business that converted millions of dollars in bulk cash into crypto, including funds tied to criminal activity.
Brian Garry Sewell, 54, of Washington County, was sentenced to 36 months in prison followed by three years of supervised release after pleading guilty to wire fraud. The court also ordered him to pay more than $3.8 million in total restitution, including compensation for defrauded investors and federal agencies, according to the U.S. Attorney’s Office for the District of Utah.
Prosecutors said Sewell obtained more than $2.9 million from at least 17 investors by falsely claiming he had the expertise and education to generate high returns through cryptocurrency investments. The fraud scheme ran from December 2017 through April 2024.
Investor Takeaway
Federal courts continue to treat crypto-related fraud as traditional financial crime, with prison sentences and full restitution orders, not regulatory fines.
How Did the Unlicensed Crypto Business Operate?
In a separate but related case, prosecutors said Sewell also operated Rockwell Capital Management as an unlicensed money-transmitting business between March and September 2020. During that period, he converted more than $5.4 million in bulk cash into cryptocurrency on behalf of third parties. Authorities said some of those third parties were involved in fraud and drug trafficking.
Sewell charged fees for each conversion and failed to comply with federal registration and anti-money-laundering reporting requirements, according to court filings. Both cases were resolved through guilty pleas, and the sentences will run concurrently, resulting in a total prison term of three years.
The restitution order includes payments to investors, a mortgage lender, a credit union, and the U.S. Department of Homeland Security.
Why Does This Case Matter for Crypto Markets?
The case highlights continued enforcement focus on unlicensed crypto activity that resembles traditional money-service businesses. Converting cash to cryptocurrency for third parties without registration places operators squarely within federal money-transmission laws, regardless of whether transactions occur on blockchains.
Law enforcement officials framed the sentencing as part of a broader effort to deter misuse of digital assets. “The FBI will continue to put victims first by holding offenders accountable and pursuing those who misuse cryptocurrency and unlicensed financial services to exploit others,” said Special Agent in Charge Robert Bohls of the Salt Lake City FBI.
The sentencing also arrives amid rising concern about crypto-related fraud. A recent Chainalysis report found that $17 billion in cryptocurrency was lost to scams worldwide, driven by impersonation tactics, social engineering, and AI-assisted schemes. Separate data showed illicit crypto addresses received an estimated $154 billion in 2025, up sharply from the prior year.
Investor Takeaway
Cases involving unlicensed crypto services and investor fraud increasingly carry criminal penalties, reinforcing the risks of dealing with unregistered operators.
What’s the Broader Enforcement Signal?
Federal prosecutors have steadily increased scrutiny of crypto schemes that mix investment fraud with informal cash-to-crypto conversion. The Sewell case shows how authorities link investor deception with money-laundering violations when funds pass through unregistered businesses.
For crypto users and investors, the message is clear: promises of high returns paired with off-book cash handling remain a major red flag. As digital assets continue to attract both legitimate use and criminal exploitation, enforcement agencies are treating crypto-based schemes under the same legal framework as traditional financial crimes.
Sewell’s sentencing adds to a growing list of cases where courts have imposed prison time rather than civil penalties, reflecting a hard line against fraud tied to digital assets.