Las Vegas Businessman Faces Trial for $24 Million Cryptocurrency Fraud with Potential 330-Year Sentence

Las Vegas businessman Brent C. Kovar is facing trial after being charged with orchestrating a $24 million cryptocurrency fraud through his company, ProfitConnect. 

According to the Report by Nevada Attorney General’s Office, Kovar appeared in court for the first time on February 14 to respond to allegations that he misled over 400 investors by falsely claiming to use artificial intelligence (AI) to mine and verify cryptocurrency transactions.

Prosecutors allege that from late 2017 to July 2021, Kovar lured investors with promises of 15% to 30% annualized returns and a full refund guarantee, ultimately defrauding them of millions.

ProfitConnect’s Fraudulent Scheme and AI Deception

Kovar’s company, ProfitConnect, positioned itself as an AI-driven cryptocurrency investment platform, capitalizing on the growing interest in automated crypto trading and blockchain verification. 

Prosecutors claim that rather than legitimately investing funds, Kovar misappropriated the money for personal expenses and other undisclosed activities. 

The alleged fraud highlights the dangers of deceptive AI claims in the cryptocurrency sector, where technological jargon and false guarantees can easily mislead investors. 

Authorities have also noted that ProfitConnect lacked proper financial disclosures and engaged in misleading promotional tactics to attract unsuspecting victims.

Also Read: Crypto Sleuth ZachXBT Calls Out Coinbase Over $65M In User Scams, Urges Urgent Action

Legal Charges and Severe Penalties

Kovar has been charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering—serious offenses that carry substantial penalties. 

If convicted on all counts, he faces a maximum sentence of 330 years in prison and fines totaling $4.5 million. 

Federal prosecutors are expected to present evidence of fraudulent financial transactions, misleading investor communications, and misuse of investor funds during the trial. 

Given the scale of the alleged fraud and the number of affected victims, legal experts anticipate that the court will pursue harsh penalties in this case.

Trial Set for April 2025 Amid Growing Crypto Fraud Crackdowns

Kovar’s trial is scheduled to begin on April 8, 2025, as authorities continue to crack down on cryptocurrency-related fraud. 

The case underscores the increasing scrutiny from regulators and law enforcement agencies on crypto investment schemes that operate under false pretenses. 

Over the past few years, several high-profile cryptocurrency fraud cases have emerged, reinforcing the need for stricter investor protections and transparency in digital asset markets. 

As Kovar’s legal battle unfolds, the case is expected to serve as a warning to investors about the risks of entrusting funds to unregulated entities making extravagant claims about AI and cryptocurrency profits.

Recent Crypto Scam Prosecutions

Authorities worldwide are cracking down on crypto fraud, with several high-profile cases emerging. 

Thai and Chinese officials seized $2.5 million in USDT from a fraud operation, arresting two suspects who attempted to erase evidence. Digital forensics recovered key data, leading to their prosecution.

In South Korea, prosecutors charged six individuals in a $7.9 million crypto scam that defrauded over 1,036 investors. 

The group used overseas exchanges, deceptive listings, and social media hype to manipulate token sales.

A Chainalysis report revealed crypto fraud hit $12.4 billion in 2024, with “pig butchering” scams making up 33.2% of the total. Fraudulent wallets received $9.9 billion, highlighting the growing threat of digital asset crimes.

Regulators are now tightening policies and enhancing blockchain tracking to combat scams. As crypto adoption grows, investor protection and legal enforcement remain top priorities.

Also Read: Payment Gateway Firms In India Are Under ED Investigation Over Alleged Crypto Scam