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Brent Kovar Convicted in $24 Million Crypto Ponzi Scheme

The Profit Connect case centers on fixed returns, AI promises, and money flows that the SEC says mostly came from new investor funds.

By Mike Hesp
• 2 min read
Brent Kovar Convicted in $24 Million Crypto Ponzi Scheme

Key Takeaways

  • Brent Kovar was found guilty of running a crypto Ponzi scheme that defrauded at least 400 investors out of $24 million.
  • The case centered on Profit Connect, which prosecutors say made false claims about AI, mining, and fixed returns of 20% to 30% per year.
  • According to authorities, new investor money was used for payouts to other investors and personal expenses, while sentencing will follow later this year.

Brent Kovar, a businessman from Las Vegas, was found guilty of running a crypto Ponzi scheme that allegedly defrauded at least 400 investors out of $24 million (€20.6 million). U.S. prosecutors in Nevada announced Monday that the jury found him guilty after a nine-day trial on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering.

Profit Connect Case

The conviction centers on Profit Connect, the crypto company that Kovar and his mother Joy Kovar came under SEC scrutiny for in 2021. At the time, the regulator said they had raised more than $12 million (€10.3 million) from at least 277 investors by claiming the company made money from forex, stocks, and other investments alongside blockchain mining.

According to the indictment, the Kovars painted a picture of an AI supercomputer that could generate fixed returns of 20% to 30% per year, with monthly compounding growth. In practice, a large share of the money from new investors was allegedly used for payouts to other investors and for personal expenses, including money sent to Joy Kovar’s personal account.

More Than Just Returns

The case shows how quickly crypto, AI, and big promises can be used together to build trust. Profit Connect presented itself as profitable, with hundreds of millions of dollars in crypto reserves and a 100% money-back guarantee, but according to authorities, more than 90% of the funds actually came from investors themselves.

In November 2025, Profit Connect’s receiver already went to court against 20 promoters who, according to him, had benefited from the fraud. That fits into a broader effort to recover money for harmed investors, while Kovar’s sentencing is still set for later this year.

What This Means for Investors

For European crypto readers, this is mainly a reminder that claims about fixed returns and AI-driven profit models should be looked at extra carefully. In the crypto market too, fraud cases often come down to the same patterns: big promises, little transparency, and money flows that do not match the story being told to investors.

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