Three Years for a $2.9M Crypto Scam: A Pratchett-esque Tale

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In a land where ledgers gleam like the coins of small gods and the word “cryptocurrency” gets bandied about more than coffee at a startup, Brian Gary Sewell-yes, that Utah resident with a knack for turning math into mischief-has been handed three years in federal prison for his role in a $2.9 million caper. The courtroom, which is to justice what a wizard’s wand is to a stuck spell, nodded sagely and assigned a sentence that would frighten even a goblin with a spreadsheet. 🧙‍♂️💰

  • Brian Gary Sewell was sentenced to three years in federal prison for defrauding investors and running an unlicensed cryptocurrency business. 🕵️‍♀️
  • Prosecutors said he collected over $2.9 million from at least 17 victims by misrepresenting his experience and investment capabilities. 💸
  • A separate case found Sewell operated a cash-to-crypto service that converted over $5.4 million for third parties without proper registration. 🪙

Sewell pleaded guilty to wire fraud and was sentenced to 36 months in prison plus three years of supervised release, according to a January statement from the U.S. Attorney’s Office for the District of Utah. The courtroom probably considered the phrase “you can’t fake experience forever” and nodded like a particularly solemn owl. 🦉

The 54-year-old Washington County resident admitted to running two parallel schemes, both of which will run concurrently for a total of three years’ imprisonment. He’s also been ordered to pay about $3.8 million in restitution, presumably so the arithmetic can haunt him in his dreams. 🧮

Between December 2017 and April 2024, Sewell allegedly “obtained money from at least 17 investors by lying about his experience, education, and ability to generate large returns”-in case you forgot the part where honesty isn’t a currency in his wallet-while collecting over $2.9 million. 🪙🪙

Then, from March to September 2020, he launched another unlawful venture via Rockwell Capital Management, described by authorities as “an unlicensed money transmitting business.” Because what the world needed was more doors to walk into with wind at your back and no keys. 🗝️🚪

“Sewell and his company converted bulk cash to cryptocurrency on behalf of third parties, including criminals engaged in fraud and drug trafficking,” prosecutors said. The sort of sentence that sounds less like a financial strategy and more like a cautionary fairy tale for future auditors. 🧚‍♂️💳

In total, he helped convert over $5.4 million in cash to cryptocurrency and did so “without complying with federal laws designed to prevent the movement of illicit funds.” If you’re counting dragons, that’s a big one, though the treasure was just a pile of paperwork threatening to breathe fire. 🐉📜

“Sewell preyed on his victims by lying about his experience and promising returns he could not deliver, leaving individuals and families to bear the consequences of his deception,” FBI Special Agent in Charge Robert Bohls was quoted as saying-basically, the dragon got the gold and left the knights with the paperwork. 🗡️📄

As previously reported by crypto.news, Sewell also operated the American Bitcoin Academy and was first officially charged by the Securities and Exchange Commission (SEC) in February 2024. The SEC settlement included a civil penalty and disgorgement rather than a drawbridge built of gold, but the moat clearly did its job. 🏰💼

At the time, Sewell and Rockwell Capital Management reached a settlement with the SEC without admitting or denying the allegations, and were ordered to pay a civil penalty of $223,229 alongside $1.6 million in disgorgement plus interest. The court apparently decided that honesty is a negotiable instrument, and the bank account was the witness. 🧾🪙

He was later arrested in Salt Lake City after a federal grand jury returned an indictment against him. The wheels of justice turn, sometimes with more clatter than glamour, but they spin nonetheless. 🌀🔎

Meanwhile, the DOJ has its own little novella to recount: Samourai Wallet founders were sentenced not long after, with William Hill getting four years and Keonne Rodriguez five years in prison. They also forfeited about $237.8 million in assets tied to illicit transactions and paid roughly $6.3 million in penalties and restitution. It’s the sort of sequel where the heroes don’t quite win, and the villains do the accounting after the credits roll. 🧾🎭

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2026-01-16 12:13