Business Owner Faces Up to 280 Years in Prison for $24M Crypto Ponzi Scheme

cryptonews.ruPublished on 2026-08-25Last updated on 2026-08-25

Abstract

A Las Vegas business owner faces a statutory maximum of 280 years in prison after a federal jury found him guilty of operating a $24 million cryptocurrency Ponzi scheme that defrauded at least 400 investors. Brent Kovar was convicted on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering. Kovar owned Profit Connect from late 2017 until July 2021, falsely presenting it as a profitable company that used AI software on a supercomputer for crypto mining and transaction verification. He promised investors annual returns of 15% to 30% and a full money-back guarantee, claiming the company held hundreds of millions in crypto reserves. Prosecutors stated the company was not profitable, lacked such reserves, and had no legitimate means to pay the promised returns. Instead, Kovar used investor funds to run Profit Connect, buy gifts for employees, purchase a home for himself, and pay earlier investors, misrepresenting those payments as crypto profits. Sentencing is scheduled for November 30; the 280-year figure is the cumulative statutory maximum, with the final sentence to be determined by a federal judge.

A Las Vegas business owner faces a statutory maximum sentence of 280 years in prison after a federal jury found him guilty of running a $24 million crypto Ponzi scheme that defrauded at least 400 investors.

The U.S. Department of Justice announced Monday that Brent Kovar was convicted on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering following a nine-day trial.

Kovar owned Profit Connect from late 2017 until July 2021. The company purportedly used artificial intelligence-based software on a supercomputer to mine cryptocurrency and verify other crypto transactions.

Kovar falsely represented the company as profitable and promised fixed annual returns of 15% to 30% along with a 100% money-back guarantee. He also claimed Profit Connect held hundreds of millions of dollars in cryptocurrency reserves.

Prosecutors said the company was not profitable and did not have such reserves. It also had no legitimate means to pay the promised returns or fulfill the money-back guarantee.

Instead, Kovar used investor funds to operate Profit Connect, purchase employee gifts, buy a house for himself, and pay earlier investors, presenting these payments as earnings from crypto activity.

Kovar is scheduled to be sentenced on November 30. The 280-year figure represents the cumulative statutory maximum sentence, while a federal judge will determine his actual sentence.

Related: DOJ Seeks Dismissal of Charges Against Alleged $722M BitClub Scammer: Report

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