Brent Kovar Allegedly Defrauded Over 400 Investors
A Las Vegas man has been accused of orchestrating a $24 million cryptocurrency Ponzi scheme, luring more than 400 investors with false promises of guaranteed high returns and full refunds.
Brent Kovar, the alleged mastermind behind the scheme, claimed his company, Profit Connect, utilised artificial intelligence to mine and verify cryptocurrency transactions. According to the US Attorney’s Office for the District of Nevada, Kovar misled investors, with some believing their funds were protected by the Federal Deposit Insurance Corporation (FDIC).
Fraudulent Promises and Misuse of Funds
Between late 2017 and July 2021, Kovar is alleged to have operated Profit Connect as a front for fraudulent activities, promising investors fixed annual returns of 15% to 30%. However, authorities claim he used their money to finance his lavish lifestyle rather than legitimate cryptocurrency mining operations.
Investigators report that Kovar diverted funds to purchase a house, buy luxury gifts for employees, and repay early investors using money from new ones—hallmarks of a Ponzi scheme.
“Kovar used investor money to operate Profit Connect, buy gifts for employees, buy a house for himself, and repay investors as if those repayments came from mining cryptocurrency and verifying cryptocurrency transactions,” authorities stated.
To attract investors, Kovar used a combination of online marketing, including a website, a YouTube video, and PowerPoint presentations. He now faces 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. If convicted, he could be sentenced to up to 330 years in prison and fined $4.5 million.
Authorities Intensify Crypto Fraud Crackdown
Kovar’s indictment is part of a broader crackdown on cryptocurrency-related Ponzi schemes, as law enforcement agencies respond to increasing fraud cases in the digital asset sector.
In January 2025, Antonia Perez Hernandez, a promoter of the Forcount crypto Ponzi scheme, was sentenced to over two years in prison after pleading guilty to conspiracy to commit wire fraud.
In another case, an 86-year-old former attorney from California was sentenced in October 2024 to five years of probation and ordered to pay nearly $14 million in restitution for running a separate multimillion-dollar crypto Ponzi scheme.
Meanwhile, the FBI’s “Operation Level Up” initiative has reportedly helped prevent approximately $285 million in potential cryptocurrency fraud losses between January 2024 and January 2025.
Authorities continue to warn investors to remain cautious of schemes promising guaranteed high returns, stressing that such offers are often red flags for fraudulent activity.
