Brian Sewell, the founder of the American Bitcoin Academy, was sentenced to three years in federal prison for running an unlicensed cryptocurrency operation that defrauded investors of roughly $2.9 million and converted millions in cash to crypto without complying with federal anti-money‑laundering rules. Key details - The U.S. Attorney’s Office in Utah said Sewell, 54, of Washington County, pleaded guilty to wire fraud and was sentenced on Jan. 15 to 36 months in prison plus three years of supervised release. The terms from two parallel schemes will run concurrently. - Sewell was ordered to pay a combined $3.8 million in restitution. - From December 2017 to April 2024, prosecutors say Sewell obtained funds from at least 17 investors by misrepresenting his experience, education and ability to deliver high returns, collecting more than $2.9 million. - Separately, between March and September 2020, Sewell ran Rockwell Capital Management, described by authorities as an “unlicensed money transmitting business.” Through Rockwell he converted over $5.4 million in bulk cash into cryptocurrency for third parties, including individuals allegedly involved in fraud and drug trafficking, without following federal laws intended to curb illicit fund flows. Federal reaction and prior enforcement - FBI Special Agent in Charge Robert Bohls said Sewell “preyed on his victims by lying about his experience and promising returns he could not deliver, leaving individuals and families to bear the consequences of his deception.” - Sewell was initially charged by the SEC in February 2024. He and Rockwell Capital Management settled with the regulator without admitting or denying the allegations, agreeing to a $223,229 civil penalty and about $1.6 million in disgorgement plus interest. He was later indicted by a federal grand jury and arrested in Salt Lake City. Wider enforcement context Sewell’s sentence comes as U.S. authorities continue to tighten enforcement around crypto services and illicit money flows. Recent related cases include the Department of Justice’s prosecutions of Samourai Wallet executives — where co-founder William Hill received four years and CEO Keonne Rodriguez five years — and forfeitures and penalties tied to hundreds of millions of dollars in illicit transactions. Why it matters The case underscores scrutiny on unlicensed crypto businesses and the legal obligations of firms converting fiat to crypto. Operators who skip licensing, AML checks, or who misrepresent credentials and promised returns face both civil and criminal penalties — and investors remain vulnerable when due diligence is avoided. Read more AI-generated news on: undefined/news

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