American Bitcoin Academy founder Brian Sewell sentenced to 3 years over $2.9M crypto fraud
Utah resident Brian Gary Sewell, the founder of the American Bitcoin Academy, has been handed a three-year federal prison sentence for orchestrating a pair of fraudulent cryptocurrency schemes that collectively took in millions of dollars and sidestepped U.S. financial regulations.
According to a statement from the U.S. Attorney’s Office for the District of Utah dated Jan. 15, the 54‑year‑old pleaded guilty to wire fraud and admitted to operating an unlicensed money-transmitting business. In addition to his 36‑month prison term, Sewell will serve three years of supervised release once he leaves custody and must pay more than $3.8 million in restitution to his victims.
Prosecutors said Sewell ran two overlapping operations that together formed the core of his criminal conduct. The prison terms for both schemes will run concurrently, meaning he faces a total of three years behind bars rather than separate consecutive sentences.
From December 2017 through April 2024, Sewell solicited funds from at least 17 investors by misrepresenting who he was and what he could deliver. Authorities say he fabricated or exaggerated his education, professional background, and investment track record, and claimed he could generate “large returns” through cryptocurrency strategies. On the strength of those false promises, he raised more than $2.9 million.
Instead of deploying those funds as advertised, Sewell failed to invest the money as represented and misled investors about the status and performance of their funds. Many of the individuals who trusted him did so based on his positioning as an educator and expert in the rapidly growing digital asset sector.
A second scheme unfolded between March 2020 and September 2020 through Sewell’s company, Rockwell Capital Management. Investigators described Rockwell as an unlicensed money transmitting business that specialized in converting large amounts of cash into cryptocurrency for third parties. This type of service, in itself, is heavily regulated in the U.S. due to its potential use in money laundering and other financial crimes.
Prosecutors stated that Sewell and Rockwell Capital Management processed over $5.4 million in cash-to-crypto conversions during that period. Some of those third parties were allegedly involved in other fraudulent activity and drug trafficking, making the lack of compliance particularly serious in the eyes of law enforcement.
Federal authorities emphasized that Sewell operated this business without implementing the anti-money laundering controls and registration requirements that apply to money service businesses in the U.S. As a result, he helped move substantial sums into digital assets while bypassing key safeguards designed to stop the flow of illicit funds.
“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,” said FBI Special Agent in Charge Robert Bohls, underscoring the human impact of the crimes beyond the raw dollar figures.
Sewell’s activities attracted regulatory scrutiny even before his federal criminal case advanced. In February 2024, the Securities and Exchange Commission brought civil charges against him and Rockwell Capital Management. Regulators alleged that he misled investors and violated securities laws in connection with his crypto-related offerings and operations.
Without admitting or denying the SEC’s allegations, Sewell and Rockwell reached a settlement that required them to pay a $223,229 civil penalty, along with approximately $1.6 million in disgorgement and interest. The SEC’s action was one of the early public signals that federal authorities were closing in on Sewell’s conduct.
Following the civil case, a federal grand jury returned a criminal indictment against Sewell, leading to his arrest in Salt Lake City. The subsequent plea and sentencing mark the culmination of a years-long investigation into his crypto dealings and investor solicitations.
The case is part of a broader federal crackdown on crypto-related crimes and regulatory violations. Sewell’s sentencing came only months after the U.S. Department of Justice secured prison terms for executives behind Samourai Wallet, a privacy‑focused cryptocurrency wallet.
Samourai Wallet co‑founder and chief technology officer William Hill received a four‑year prison sentence, while CEO Keonne Rodriguez was sentenced to five years. Prosecutors said the wallet’s tools were used to facilitate the concealment of illicit transactions. As part of their punishment, Hill and Rodriguez agreed to forfeit about $237.8 million in assets tied to illegal activity and to pay roughly $6.3 million in criminal penalties and restitution.
Taken together, the Sewell and Samourai cases highlight a more aggressive enforcement trend targeting both outright fraud and the misuse of digital asset infrastructure to launder or obscure unlawful funds. Authorities are sending a clear signal that the relative novelty of cryptocurrency is no shield against traditional fraud and money‑laundering statutes.
For investors, the Sewell case is a stark reminder of how easily crypto “experts” can exploit hype and technical complexity. Sewell presented himself as a seasoned professional and an educator through the American Bitcoin Academy, positioning his brand as a gateway to the world of digital assets. This image of authority and insider knowledge can make it especially difficult for inexperienced investors to distinguish legitimate opportunities from sophisticated scams.
A recurring pattern in such schemes involves promises of consistently high returns, vague or overly technical explanations of strategies, and pressure to move funds quickly to avoid “missing out” on market opportunities. In Sewell’s case, prosecutors specifically highlighted his false claims about his background and abilities as key elements of the fraud.
Prospective investors can take several lessons from this case. First, credentials matter—but must be verified. Claims about degrees, professional history, or past performance should always be checked independently, especially when large sums are involved. Second, any promise of unusually high or “guaranteed” returns in volatile markets like cryptocurrency should be treated as a major warning sign.
Third, investors should be wary of operations that appear to be running investment products or money services without clear registration or licensing information. In the U.S., many types of investment offerings must comply with securities laws, and businesses that convert or transfer funds, including crypto, often need specific money-transmitter licenses and robust compliance programs.
From a regulatory perspective, Sewell’s unlicensed cash‑to‑crypto business illustrates one of the most sensitive points in the digital asset ecosystem: the bridge between traditional money and cryptocurrencies. Governments have steadily tightened rules around exchanges and payment processors precisely because those on‑and‑off ramps can be exploited by criminals seeking to obscure the origin of their funds.
By operating outside that regulatory framework, Sewell not only defrauded investors but also helped enable other forms of criminal activity, according to prosecutors. That combination—investor harm plus facilitation of broader illicit finance—tends to draw especially strong responses from courts and enforcement agencies.
The case also underscores how civil and criminal enforcement can intersect in the crypto sector. The SEC’s action focused on securities law violations and investor protections, while the DOJ pursued wire fraud and money-transmitting charges. For industry participants, this dual exposure means that misrepresentations or compliance failures can trigger both regulatory penalties and criminal liability.
For legitimate crypto businesses, the message is equally sobering. As the industry matures, authorities are expecting full adherence to existing financial laws, from anti-money laundering requirements to investor disclosure rules. Operating in a gray area or assuming that crypto falls outside traditional frameworks is increasingly likely to bring unwanted attention from regulators and law enforcement.
Despite the steady rise in enforcement actions, crypto fraud and unlicensed activity continue to surface worldwide. Recent cases in multiple jurisdictions show scammers posing as support staff for major exchanges, promoters pushing Ponzi‑style investment opportunities, and organized networks using crypto rails to launder hundreds of millions in illicit proceeds.
In this environment, education and skepticism are vital for anyone interacting with digital assets. While blockchain technology and cryptocurrencies offer genuine innovation and new financial models, they also create fertile ground for bad actors who exploit technical opacity and regulatory gaps.
Brian Sewell’s downfall—from self‑styled Bitcoin educator to convicted fraudster—illustrates how quickly reputations can be constructed and then dismantled in the crypto era. For victims, the financial and emotional damage can last far longer than the offender’s prison term. For the broader market, each high‑profile case reinforces the importance of transparency, regulation, and due diligence as digital assets continue their push into the mainstream.