Business owner faces up to 280 years over $24M crypto Ponzi scheme

cointelegraphPublished on 2026-08-25Last updated on 2026-08-25

Abstract

A Las Vegas business owner, Brent Kovar, faces a potential maximum sentence of 280 years in prison after being convicted by a federal jury for orchestrating a $24 million cryptocurrency Ponzi scheme. Kovar, who operated Profit Connect from late 2017 to July 2021, falsely claimed the company used AI and a supercomputer for crypto mining and transaction verification. He promised investors annual returns of 15% to 30% and a money-back guarantee, asserting the company held massive crypto reserves. Prosecutors revealed the business was unprofitable, held no such reserves, and used new investor funds to pay earlier investors, cover operational costs, and for personal expenses like a house purchase. Kovar was found guilty on multiple counts of wire fraud, mail fraud, and money laundering. His sentencing is scheduled for November 30.

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

The US Justice Department said Monday that Brent Kovar was found guilty of 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 to July 2021. The company purportedly used artificial intelligence software on a supercomputer to mine crypto and verify other crypto transactions.

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

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

Instead, Kovar used investor money to operate Profit Connect, buy gifts for employees, purchase a house for himself and repay earlier investors while presenting the payments as proceeds from crypto activities.

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

Related: DOJ moves to dismiss charges against alleged $722M BitClub fraudster: Report

Related Questions

QWhat was Brent Kovar convicted of by a federal jury?

ABrent Kovar was convicted of 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering.

QWhat was the name of the company Kovar owned and what did it purportedly do?

AKovar owned Profit Connect, a company that purportedly used artificial intelligence software on a supercomputer to mine crypto and verify other crypto transactions.

QWhat false promises did Kovar make to investors of Profit Connect?

AKovar falsely promised investors fixed annual returns ranging from 15% to 30%, along with a 100% money-back guarantee, and claimed the company held hundreds of millions of dollars in crypto reserves.

QHow did Kovar actually use the investor money according to prosecutors?

AProsecutors said Kovar used investor money to operate Profit Connect, buy gifts for employees, purchase a house for himself, and repay earlier investors while presenting the payments as proceeds from crypto activities.

QWhat is the statutory maximum prison sentence Kovar faces and when is his sentencing scheduled?

AKovar faces a statutory maximum sentence of 280 years in prison. His sentencing is scheduled for November 30.

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