Utah resident Brian Gary Sewell has been sentenced to 36 months in federal prison after admitting to defrauding investors of roughly $2.9 million through an unlicensed cryptocurrency business, according to filings from the U.S. Attorney’s Office for the District of Utah.
The 54-year-old founder of the American Bitcoin Academy pleaded guilty to wire fraud and acknowledged running schemes that misrepresented his experience and ability to generate returns for investors. As part of the sentence, Sewell was also ordered to pay approximately $3.8 million in restitution to compensate victims.
Case Details and Sentencing
Federal prosecutors said Sewell obtained funds from at least 17 victims between December 2017 and April 2024 by falsifying credentials and assuring investors of strong returns that never materialized. The fraud included a separate operation under the name Rockwell Capital Management, identified as an unlicensed money-transmitting business.
In that scheme, authorities reported that Sewell’s operations converted more than $5.4 million in cash to cryptocurrency without the required federal registration and safeguards intended to prevent money laundering and illicit finance.
The dual schemes ran concurrently, and the court ordered that the three-year prison term and the restitution obligation be served simultaneously. After his release, Sewell is to be placed on supervised release for a further three years.
Federal officials noted that the case was part of broader enforcement efforts targeting unlicensed crypto services and fraud that take advantage of investor trust. FBI officials highlighted the personal and financial harm inflicted on individuals who relied on Sewell’s misrepresentations.
Broader Enforcement Context
The sentencing of Sewell comes amid heightened scrutiny of fraudulent schemes within the cryptocurrency space. U.S. authorities have stepped up actions against unregistered crypto businesses and deceptive investment operations, with other recent cases resulting in lengthy prison terms and substantial asset forfeitures.
These developments underscore continuing regulatory and criminal-justice focus on fraud and illegal money-transmitting schemes that leverage digital assets to obscure transaction trails and evade compliance.
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