Las Vegas businessman convicted in $24 million crypto Ponzi scheme

A Nevada federal jury convicted Las Vegas entrepreneur Brent Kovar on 15 counts, including wire fraud, mail fraud and money laundering, for operating a cryptocurrency‑related Ponzi scheme that collected roughly $24 million from more than 400 investors.

Scheme details

Kovar promoted Profit Connect as a profitable crypto‑mining business that used artificial‑intelligence software on a supercomputer to mine digital assets and verify transactions. Investors were promised fixed annual returns of 15 % to 30 % and a 100 % money‑back guarantee, with claims that the company held hundreds of millions of dollars in crypto reserves.

How the fraud was carried out

The prosecution said the operation had no legitimate income and no reserves to support the promised returns. New investor funds were used to pay earlier investors, cover operating expenses, purchase gifts for employees, and buy a personal house for Kovar. Marketing materials included a website, YouTube video and PowerPoint presentation, and the business leased space presented as a data‑center.

Legal outcome

The jury returned guilty verdicts on 11 counts of wire fraud, two counts of mail fraud and two counts of money laundering after a nine‑day trial. Kovar faces a statutory maximum sentence of 280 years, with sentencing scheduled for November 30, 2026.

Broader context

This conviction follows several high‑profile U.S. cases involving crypto‑related fraud, including the BitClub Network, Goliath Ventures and other schemes that used false investment promises to divert funds to earlier participants or personal use.