Brian Sewell was convicted of three years for a $2.9million crypto fraud and an unlicensed money-sending business. The founder of the American Bitcoin Academy is also required to pay huge restitution. Brian Sewell suffered a colossal failure in his cryptocurrency empire. The Washington County resident of 54 years is now serving a three-year term in jail. His offenses spanned close to seven years. Federal prosecutors revealed some shocking information regarding the activities of Sewell. He had two illegal schemes running simultaneously. Both will receive concurrent 36-month sentences. The Investment Trap That Fooled 17 Victims Sewell had constructed his fraud on fantastic lies. He was lying about his experience and educational qualifications. He assured investors huge returns, which never materialized. The U.S. Attorney’s Office of the District of Utah claims that Sewell received funds representing at least 17 investors based on promises of his experience, education, and potential of making huge returns between December 2017 and April 2024. The plot earned him over 2.9 million dollars from unsuspecting people. The U.S. District Court Judge Ann Marie McIff Allen granted massive restitution. Sewell is liable to pay the defrauded investors an amount of $3,605,182. He is also indebted to Homeland Security to the tune of 217,727. You might also like: Why Bitcoin’s $100K “Resistance” Is Artificial, Not Technical The Shadow Banking Operation Nobody Saw Coming The second enterprise of Sewell was also of a sinister character. Between March 2020 and September 2020, he was running Rockwell Capital Management, an unregistered money-transmitting enterprise. According to federal prosecutors, Sewell and the company he worked with exchanged bulk cash into cryptocurrency on behalf of third parties, including criminals who committed fraud and drug trafficking. He has transacted over $5.4million without an appropriate license and charged per transaction. FBI Special Agent in Charge Robert Bohls highlighted the human price. Sewell is claimed to prey on his victims as he lied about his experience and offered returns that he could not deliver, leaving individuals and families to deal with the results of his deceit, Bohls said. Melissa Holyoak, the U.S. Attorney, criticized the acts of Sewell, emphasizing that her office was determined to prevent the abuse of the financial-system. The prevalence of such schemes was noted by IRS-CI Phoenix Field Office Acting Special Agent in Charge Jarom Gregory. A number of federal agencies were involved in the investigation. Homeland Security Investigations, FBI Salt Lake City, and IRS cooperated. Both cases were prosecuted by Assistant U.S. Attorney Stephen P. Dent. Sewell also had an earlier encounter with charges by the SEC in February 2024. He pleaded not guilty and was fined 223,229 in penalties and also 1.62M disgorgement and interest. The case reflects new crypto-enforcement efforts. The founders of Samourai Wallet were sentenced to four to five years. The DOJ still pursues criminals of cryptocurrencies. The post Crypto Kingpin’s Double Life: $8M Empire Crumbles appeared first on Live Bitcoin News.

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