Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
A federal jury in Nevada has found Las Vegas businessman Brent C. Kovar guilty of running a multimillion-dollar <a href="https://xpertsstudio.com/crypto-group-backs-32-u-s-midterm-candidates/” title=”Crypto Group Backs 32 U.S. Midterm Candidates”>cryptocurrency fraud that prosecutors described as a classic Ponzi scheme. The verdict, delivered after a nine-day trial, holds Kovar responsible for taking roughly $24 million from at least 400 investors between late 2017 and mid-2021 through his company, Profit Connect.
Kovar marketed Profit Connect as a “cutting-edge” operation that used artificial intelligence software running on a powerful supercomputer to mine digital currency and validate blockchain transactions.
He assured prospective investors that the business was already profitable and generating steady income.
Promotional materials and presentations promised fixed annual returns ranging from 15 percent to 30 percent, along with a complete money-back guarantee.
He further claimed the firm held hundreds of millions of dollars in cryptocurrency reserves and, in some cases, suggested that investments carried protection similar to Federal Deposit Insurance Corporation coverage.
Evidence presented at trial painted a sharply different picture.
Prosecutors showed that Profit Connect generated virtually no legitimate mining revenue.
Instead of funding payouts through actual cryptocurrency activity, Kovar relied on money coming in from newer investors to make payments to earlier ones, creating the false appearance of success.
Investor funds also covered day-to-day company expenses, employee gifts, and personal purchases, including a house for Kovar himself.
The jury convicted Kovar on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering.
He is scheduled to be sentenced on November 30, 2026.
Under federal statutes, the maximum possible term of imprisonment totals 280 years, though the final sentence will be determined by the judge after reviewing sentencing guidelines and other factors.
The case highlights ongoing risks in the cryptocurrency investment space, where high promised returns and technical jargon can obscure underlying problems.
Authorities from the FBI, Internal Revenue Service Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General assisted in the probe.
Officials emphasized that schemes exploiting the complexity of digital assets continue to target ordinary people seeking financial opportunity.
Kovar’s conviction closes a chapter that began years earlier when civil regulators first scrutinized Profit Connect.
A court-appointed receiver took control of the company in 2021 after finding that claimed mining operations had produced only negligible results.
Criminal charges followed in early 2025, leading to the recent trial and guilty verdicts.
Victims of the scheme spanned multiple states, many drawn in by online presentations, videos, and sales pitches that emphasized advanced technology and guaranteed safety.
The outcome serves as yet another stark reminder that extraordinary claims about new financial technologies warrant careful scrutiny, independent verification, and skepticism toward assurances of risk-free high returns. Federal investigators continue to pursue similar cases involving digital assets, underscoring the commitment to holding accountable those who misuse investor trust for personal gain.
Source: www.crowdfundinsider.com