Written by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff editor

Written by Ezra Reguerrastaff writer

Reviewed by Yohan Yunstaff editor

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

Latest NewsPublishedAug 25, 2026

A federal jury convicted Brent Kovar of wire fraud, mail fraud and money laundering after he took $24 million from at least 400 investors.

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 stated 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 stated 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

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• United States
• Las Vegas
• Department of Justice
• Scams
• Ponzi Scheme
• Scams & Cybercrime

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