🚨 Crypto Fraud Gets Real Prison Time 🚨
Three years. Millions lost. Zero license.
A Utah resident just became the latest reminder that crypto without compliance ends in handcuffs ⛓️
⚖️ The Case at a Glance
Brian Gary Sewell, a Washington County resident, has been sentenced to 36 months in federal prison for running two parallel crypto fraud schemes—one targeting investors, the other enabling illicit cash-to-crypto conversions.
🧾 What Prosecutors Found?
🔻 $2.9M stolen from 17+ investors
🔻 False claims about experience, education, and guaranteed returns
🔻 Operated an unlicensed cryptocurrency business
🔻 Ran a cash-to-crypto service converting funds for third parties
🔻 Processed $5.4M+ without registration or AML controls
🔻 Enabled transactions tied to fraud and drug trafficking
⏳ The Sentence
📌 3 years in federal prison
📌 3 years supervised release
📌 $3.8M restitution ordered
Federal authorities made it clear:
“This wasn’t innovation. This was deception.”
🏛️ Regulatory Fallout
Charged by the U.S. Securities and Exchange Commission in February 2024
Settlement included civil penalties + disgorgement
Arrested after a federal grand jury indictment in Salt Lake City
Investigated alongside the Federal Bureau of Investigation
🔗 Bigger Picture: A Clear Enforcement Trend
This sentencing follows recent DOJ action against the Samourai Wallet founders, who received 4–5 year sentences and forfeited hundreds of millions linked to illicit flows.
The message is loud and unmistakable 👇
🚫 No license = no mercy
🚫 Privacy ≠ immunity
🚫 “Crypto” ≠ exemption from law
🧠 Takeaway
Crypto is no longer the Wild West.
If you touch client funds, promise returns, or move money 👉 registration, AML, and transparency are non-negotiable.
💬 Innovation survives. Fraud doesn’t.
