Crypto Ponzi Mastermind Convicted
Las Vegas businessman convicted of running $24M crypto Ponzi scheme promising 'AI supercomputer' returns
The update
A Las Vegas businessman has been convicted of running a $24 million cryptocurrency Ponzi scheme that defrauded at least 400 investors. Brent Kovar promised fixed returns of 15-30% annually through his company Profit Connect, claiming it used artificial intelligence on a supercomputer to mine cryptocurrency.
Why it matters
The conviction highlights persistent risks in the cryptocurrency space, particularly when scammers combine cutting-edge technology claims with unrealistic returns. Kovar falsely told investors their money was FDIC-insured and that the company had hundreds of millions in crypto reserves—none of which existed.
What to watch
Sentencing is scheduled for November 30. The case may prompt increased scrutiny on crypto investment platforms making technology-based claims. Investors should watch for similar schemes using AI or other emerging technologies as marketing hooks.
Sources
- coindesk.com — conviction details and charges
- decrypt.co — scheme methodology and investor claims