A Las Vegas man has been charged by a US regulator for allegedly orchestrating a $24 million crypto Ponzi scheme that defrauded over 400 investors. Brent Kovar, the accused, ran an AI-driven crypto mining scam under his company, Profit Connect, falsely promising lucrative returns and a 100% money-back guarantee.
According to the U.S. Attorney’s Office for the District of Nevada, Kovar misled investors by claiming their investments were FDIC-backed, and offering false assurances of safety and high returns.
Misleading Promises and Lavish Spending
From late 2017 to July 2021, Kovar lured investors with promises of fixed annual returns between 15% and 30%, positioning Profit Connect as an AI company specializing in crypto mining and transaction verification. Instead of using the funds for legitimate crypto activities, Kovar allegedly used the money to fund his extravagant lifestyle, purchase a home, buy gifts for employees, and repay earlier investors to sustain the illusion of a profitable operation.
Tools of Deception
Kovar employed a website, YouTube videos, and PowerPoint presentations to convince victims to invest. He now faces 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering, with potential penalties of up to 330 years in prison and $4.5 million in fines.
Rising Threat of Crypto Ponzi Schemes
The case is part of a growing trend of crypto Ponzi schemes. Recently, Antonia Perez Hernandez, involved in the Forcount crypto scam, was sentenced to over two years in prison. In another case, an 86-year-old former attorney from California received five years of probation and a $14 million restitution order for running a similar scheme.
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The FBI’s “Operation Level Up” reportedly saved potential victims $285 million from crypto fraud between January 2024 and January 2025, highlighting the increasing vigilance against such schemes.
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