Las Vegas Man Charged in $24M AI-Driven Crypto Mining Fraud Scheme
A Las Vegas resident has been accused of orchestrating a fraudulent AI-powered cryptocurrency mining scheme that allegedly defrauded over 400 investors out of $24 million. The scheme, which falsely promised lucrative fixed returns and a 100% money-back guarantee, is now at the center of a federal investigation.
Deceptive Promises and False Guarantees
According to the U.S. Attorney’s Office for the District of Nevada, Brent Kovar misled investors between late 2017 and July 2021 through his company, Profit Connect, which claimed to utilize artificial intelligence for cryptocurrency mining and transaction verification. Kovar allegedly assured investors of fixed annual returns between 15% and 30%, along with a 100% money-back guarantee, while falsely suggesting that their investments were FDIC-insured.
However, rather than funding a legitimate business, Kovar is accused of using investor funds to sustain Profit Connect, purchase lavish gifts for employees, buy a personal residence, and pay earlier investors—giving the illusion of legitimate returns.
To attract victims, Kovar allegedly utilized a combination of website promotions, YouTube videos, and PowerPoint presentations, portraying Profit Connect as a secure and profitable investment opportunity.
Facing Serious Charges
Kovar has been indicted on 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. If convicted on all charges, he faces a maximum prison sentence of 330 years and fines totaling up to $4.5 million.
FBI’s Crackdown on Crypto Scams Saves Millions
The case is part of a broader federal crackdown on cryptocurrency-related Ponzi schemes.
- On January 27, 2025, Antonia Perez Hernandez, a promoter of the Forcount crypto Ponzi scheme, was sentenced to more than two years in prison after pleading guilty to conspiracy to commit wire fraud.
- In October 2024, an 86-year-old former California attorney received five years probation and was ordered to repay nearly $14 million for running a multimillion-dollar crypto Ponzi scheme.
Meanwhile, the FBI’s “Operation Level Up” reportedly saved potential victims approximately $285 million from fraudulent crypto schemes between January 2024 and January 2025.
As authorities continue their efforts to combat cryptocurrency fraud, this case serves as a stark reminder for investors to exercise caution when presented with high-return, low-risk investment opportunities—especially those involving AI and cryptocurrency.
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