Las Vegas Man Charged in $24M Crypto Ponzi Scheme

A Las Vegas man has been accused of orchestrating a $24 million crypto-linked Ponzi scheme, defrauding over 400 investors with promises of lucrative fixed returns and a 100% money-back guarantee. The US Attorney's Office for the District of Nevada has charged Brent Kovar with allegedly deceiving investors from late 2017 to July 2021, claiming that his company, Profit Connect, offered a fixed annual return of 15% to 30% and a 100% money-back guarantee. However, Kovar was reportedly using the funds to finance his lavish lifestyle.

Kovar used a website, a YouTube video, and PowerPoint presentations to persuade customers to invest in his firm. He is facing 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. If convicted, he faces a maximum statutory penalty of 330 years in prison and a fine of up to $4.5 million.

This case comes amid a growing number of crypto-linked Ponzi schemes. In January 2024, Antonia Perez Hernandez, a promoter of the crypto Ponzi scheme Forcount, was sentenced to more than two years in prison after pleading guilty to conspiracy to commit wire fraud. Just a few months earlier, in October 2024, an 86-year-old former California attorney was sentenced to five years probation and ordered to pay almost $14 million after admitting to carrying out a multimillion-dollar crypto Ponzi scheme.

The FBI's "Operation Level Up" has reportedly saved victims around $285 million between January 2024 and January 2025, highlighting the increasing prevalence of crypto-related scams and the need for vigilance among investors.