Utah Man Gets 3 Years for $8M Crypto Fraud

• Brian Garry Sewell sentenced for wire fraud and operating an unlicensed cryptocurrency business.
• Highlights enforcement trends targeting illegal activities within the crypto industry.

On January 16, 2026 (UTC), Decrypt reported that Brian Garry Sewell, a Utah resident, was sentenced to three years in federal prison for wire fraud and operating an unlicensed money transmitting business. Sewell defrauded 17 investors of nearly $3 million through false promises and facilitated unauthorized cash-to-crypto conversions totaling $5.4 million. These transactions were linked to drug trafficking and other fraud schemes.

Sewell’s conviction underscores law enforcement’s ability to leverage existing financial laws to prosecute crimes involving cryptocurrencies. His wire fraud charge stemmed from misrepresentations made to investors between 2017 and 2024, reinforcing the notion that fraud—whether it involves digital assets or traditional mediums—falls under longstanding financial statutes.

This case also highlights the strict enforcement of federal money transmission laws. Sewell’s cash-to-crypto business, Rockwell Capital Management, failed to register with the Financial Crimes Enforcement Network (FinCEN) or implement an anti-money laundering program, resulting in his conviction for operating an unlicensed money transmitting business. These regulations are crucial for mitigating risks such as laundering illicit funds, which Sewell’s operation exemplified.

Moreover, Sewell’s sentencing reflects the Department of Justice’s focus on holding individuals accountable for their crimes in the cryptocurrency sector. Since April 2025, the DOJ has prioritized prosecuting individuals for fraudulent use of digital assets over enforcing broader platform-based policies. Sewell’s case exemplifies this intensified focus on personal accountability.

The broader trends in enforcement reveal increased inter-agency coordination aimed at countering illegal activities within the digital asset industry. The FBI and Homeland Security Investigations (HSI) worked together on Sewell’s case, highlighting the critical role of collaboration in tracing funds across blockchains and identifying individuals behind pseudonymous transactions.

Authorities are also targeting illicit on-ramps and off-ramps within the cryptocurrency market. Sewell’s unlicensed cash-to-crypto service represents an entry point frequently exploited by criminals. For instance, according to a January 2026 report by Tom’s Hardware, crypto ATM scams alone led to Americans losing $333 million in 2025.

The growing prevalence of crypto-related crimes has spurred aggressive enforcement efforts. Chainalysis reported in January 2026 that $17 billion was stolen through crypto scams the prior year, with impersonation schemes increasing by 1,400% year-over-year. This rise in fraud also prompted the DOJ to seize $15 billion worth of Bitcoin in October 2025 from a forced-labor scam based in Cambodia.

Sewell’s sentencing signifies the federal government’s dedication to applying established financial laws to digital asset-based crimes. It serves as a stark reminder to those in the cryptocurrency sector: non-compliance with financial regulations can result in severe penalties, including prison time and restitution.