Utah Fraudster Gets 3 Years in Prison for $2.9M Crypto Scam
Another day, another crypto criminal gets cuffed. This time, the spotlight falls on a Utah man whose digital deception just earned him a three-year federal vacation.
The Scheme: Promises, Lies, and Vanishing Funds
He pitched investors on a can't-miss opportunity—a proprietary crypto trading system that supposedly printed profits. The only thing it reliably generated was losses for everyone but him. Nearly $3 million in investor capital flowed in, then promptly flowed out to fund a lifestyle that looked suspiciously like the one he promised his victims.
The Fallout: When the Algorithm Was Just a Bank Account
No complex smart contract bug, no flash loan attack. This was old-school fraud wearing a crypto mask. The 'sophisticated trading' was a fiction, the returns a mirage. It's a classic tale of greed, proving that even in the decentralized future, some people still prefer the centralized control of other people's wallets.
The Irony: A Bull Market for Bad Behavior
It's almost poetic—these schemes flourish when prices are soaring and due diligence is the first casualty of FOMO. Investors chasing the next 100x sometimes forget to ask the most basic questions, like 'Where's my money actually going?' A little skepticism is still the best security protocol money can't buy.
The sentence sends a clear signal: the Wild West days are closing. Regulators are loading their subpoenas, and the long arm of the law now has a crypto wallet. For the industry to mature, the bad actors have to be purged—one three-year sentence at a time. After all, what's the point of building a trustless system if you can't trust the people in it?
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.
UTAH MAN GETS THREE YEARS FOR $2.9M FRAUD TIED TO CRYPTO CASH SCHEME
Brian Garry Sewell received a three-year federal prison sentence after being convicted of wire fraud and operating an unlicensed money transmission business.
Prosecutors stated that he falsely represented his… pic.twitter.com/7m4p5KvRHm
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.
