American Sentenced to Three Years for Crypto-Linked Fraud and Illegal Money Transfers
The post American Sentenced to Three Years for Crypto-Linked Fraud and Illegal Money Transfers appeared on BitcoinEthereumNews.com.
Crime A federal judge has closed the case on a Utah-based fraud operation that blended false investment promises with an underground crypto cash-conversion service, delivering a prison sentence that underscores how aggressively US authorities are pursuing crimes at the intersection of finance and digital assets. For years, Brian Garry Sewell cultivated the image of a well-educated investment professional, presenting himself as the manager of a successful hedge fund and claiming academic credentials from elite universities. That narrative proved convincing enough to attract money from multiple investors, many of whom believed they were placing funds into a legitimate, professionally run strategy. Key Takeaways A Utah man was sentenced to three years in prison for running both an investment fraud and an unlicensed crypto cash-conversion operation Prosecutors said the scheme defrauded investors and helped move millions in illicit funds through cryptocurrency The case highlights increased US enforcement against unlicensed and non-compliant crypto activities Investigators later determined that the investment vehicle never existed. Sewell’s academic claims were fabricated, and the money entrusted to him was not deployed in markets as promised. Instead, it was diverted elsewhere, leaving investors exposed and ultimately defrauded. Federal prosecutors say the scheme extracted nearly $3 million from victims over several years. Crypto as a parallel operation While the fake hedge fund drew in investor capital, authorities say Sewell was simultaneously operating a separate business centered on cryptocurrency. Using Rockwell Capital Management, he allegedly offered to convert large amounts of physical cash into digital assets for third parties, charging fees for the service. This activity was not registered or licensed under US money-transmission laws. According to investigators, more than $5 million flowed through the operation, with some transactions linked to drug trafficking and other financial crimes. The lack of compliance controls made the service particularly attractive for clients seeking…
Filed under: News - @ January 17, 2026 12:18 am