A Utah man has been sentenced to three years in federal prison after prosecutors uncovered a long running crypto related fraud scheme that caused nearly three million dollars in losses to investors while also facilitating unlicensed cash to crypto transactions worth millions. Federal authorities said the case highlights the growing enforcement focus on fraudulent activity tied to digital assets in the United States. The defendant, identified as Brian Garry Sewell, pleaded guilty to wire fraud after investigators determined that he solicited funds from investors by falsely claiming expertise, credentials, and an ability to generate consistent high returns through cryptocurrency trading. Prosecutors said at least seventeen victims transferred money and digital assets based on those representations, only to see promised gains fail to materialize. The scheme reportedly operated for several years, leaving individuals and financial institutions with significant unrecovered losses.
In addition to the prison sentence, the court ordered Sewell to pay more than three point eight million dollars in restitution to victims and federal authorities. US District Court Judge Ann Marie McIff Allen ruled that the payments would cover defrauded investors as well as losses incurred by a mortgage lender, a credit union, and the Department of Homeland Security. Prosecutors said the fraud activity stretched from late 2017 through early 2024, during which Sewell repeatedly misled investors about the safety and performance of their funds. Alongside the investment scheme, authorities revealed that Sewell also operated an unlicensed money transmitting business that converted bulk cash into cryptocurrency for third parties. That operation allegedly moved more than five point four million dollars and failed to comply with federal registration and anti money laundering requirements, raising concerns about its use by individuals involved in other criminal activity.
The sentencing comes as US regulators and law enforcement agencies intensify scrutiny of crypto related crime amid rapid growth in digital asset usage. Investigators have warned that fraud schemes often rely on trust, urgency, and promises of outsized returns rather than technical exploits. Recent enforcement actions suggest authorities are increasingly willing to pursue both individual fraudsters and unregistered intermediaries operating outside regulatory frameworks. The case also reflects broader concerns about illicit financial flows moving through crypto channels, with analytics firms reporting continued increases in criminal linked transactions. Officials say high profile convictions and restitution orders are intended to deter similar schemes and reinforce that crypto activity remains subject to existing financial and criminal laws, regardless of the technology used to move funds.
