Utah Man Sentenced to Three Years for $2.9M Crypto Fraud Scheme

Federal authorities in Utah have handed down a three-year prison sentence for a man convicted in a $2.9 million cryptocurrency fraud case. The sentence was announced as part of ongoing efforts to address growing risks associated with digital asset crimes. The case has drawn attention to the increasing prevalence of crypto-related scams and unregulated financial activities.

Brian Garry Sewell, 54, was sentenced on Thursday by U.S. District Judge Ann Marie McIff Allen. Sewell had pleaded guilty to charges of wire fraud and operating an unlicensed money-transmitting business. Court records indicate he defrauded at least 17 investors over a period of nearly seven years. The victims lost millions as a result of Sewell's false promises of high investment returns.

Sewell's scheme ran from December 2017 through April 2024, during which he misrepresented his qualifications and experience to gain the trust of investors. Authorities said he used the funds not for the promised investments but for personal use and to mislead victims. In addition to the fraud charge, Sewell admitted to running an unlicensed business that converted over $5.4 million in bulk cash into cryptocurrency for third-party clients, some of whom were linked to drug trafficking and other fraud schemes.

U.S. District Court Judge Ann Marie McIff Allen ordered Sewell to pay $3.8 million in restitution to victims and federal authorities. The amount includes $3.6 million to defrauded investors, a mortgage lender, and a credit union, as well as $217,727 to the U.S. Department of Homeland Security. The sentences for both the fraud and the unlicensed business charges will run concurrently.

Federal officials highlighted the need for stronger oversight of digital assets and compliance with U.S. anti-money laundering laws. Sewell's failure to register his business or comply with reporting requirements contributed to the harm caused to investors and the financial system. The case has raised concerns about the risks associated with unregulated crypto operations and the potential for misuse of investor funds.

Why Did This Happen?

The case underscores the growing risks tied to digital asset fraud as cryptocurrency adoption increases. Prosecutors stated that Sewell's false claims about his expertise were central to his ability to attract victims. By leveraging the promise of high returns, he was able to manipulate investors who may not have been familiar with the complexities and risks of crypto investments.

FBI Special Agent in Charge Robert Bohls said Sewell's actions left families with significant financial losses. The agency emphasized the importance of investor education and awareness to prevent similar schemes. "Sewell preyed on his victims by lying about his experience and promising returns he could not deliver," Bohls said.

What Are Analysts Watching Next?

The case has added to a broader trend of increased enforcement against crypto fraud in 2026. Authorities reported a sharp rise in digital asset-related crimes, with illicit crypto addresses receiving around $154 billion in 2025, a 162% increase from the previous year. This rise has been attributed to the anonymity and borderless nature of crypto transactions, which make tracking and enforcement more challenging.

Analysts are watching to see how regulatory frameworks will evolve in response to such cases. The U.S. has seen increased scrutiny of crypto platforms and unregistered businesses involved in digital asset transactions. In other jurisdictions, similar enforcement actions are being taken to combat fraud and ensure compliance with anti-money laundering laws.

As regulators and law enforcement agencies continue to adapt to the challenges posed by digital assets, investors are being urged to exercise caution and seek legal and financial advice when dealing with crypto investments. The growing number of high-profile cases highlights the need for greater oversight and transparency in the fast-evolving digital asset market.