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Las Vegas crypto Ponzi scheme conviction puts owner at up to 280 years

Prosecutors said the operator promised fixed annual returns of 15% to 30% and a 100% money-back guarantee, but used investor funds for personal expenses and to pay earlier investors.

Reported · Written up by our desk · Market Structure

A federal jury convicted Brent Kovar, a Las Vegas business owner, of running a $24 million crypto Ponzi scheme that defrauded at least 400 investors, according to Cointelegraph.

The US Department of Justice said 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. The outlet said the statutory maximum sentence is 280 years, with sentencing set for Nov. 30, and the actual term to be determined by a federal judge.

Cointelegraph reported that Kovar owned Profit Connect from late 2017 to July 2021. The company claimed it used artificial intelligence software on a supercomputer to mine crypto and verify transactions, while Kovar allegedly represented the business as profitable and promised fixed annual returns of 15% to 30%, plus a 100% money-back guarantee.

According to Cointelegraph, prosecutors said Profit Connect was not profitable, held no claimed crypto reserves, and lacked a legitimate way to pay the promised returns. Instead, investor money was used to operate the business, fund employee gifts, buy a house for Kovar, and repay earlier investors, with those payments presented as proceeds from crypto activities.

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