A Las Vegas man has been charged with defrauding over 400 investors out of $24 million through an AI-powered cryptocurrency mining scheme that falsely guaranteed high returns and financial security. According to the U.S. Attorney’s Office for the District of Nevada, Brent Kovar allegedly misled investors into believing his company, Profit Connect, was a legitimate AI-driven crypto mining operation. Kovar is accused of promising annual returns of 15% to 30% while assuring investors that their money was safe with a 100% money-back guarantee. Some victims were reportedly led to believe their investments were insured by the Federal Deposit Insurance Corporation (FDIC), further adding credibility to the scheme. However, authorities claim that instead of generating profits through AI and crypto mining, Kovar used investor funds to finance his personal expenses, purchase real estate, and make payments to earlier investors under the guise of returns. FBI Crackdown on Crypto Fraud Intensifies Kovar faces 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. If convicted, he could face a maximum sentence of 330 years in prison and fines of up to $4.5 million. His fraudulent operations reportedly ran from late 2017 until July 2021, during which he used a combination of websites, YouTube videos, and PowerPoint presentations to convince investors of Profit Connect’s legitimacy. Kovar’s case is just the latest in a string of high-profile crypto-related frauds that regulators are cracking down on. Earlier this year, Antonia Perez Hernandez, a promoter of the Ponzi scheme Forcount, was sentenced to more than two years in prison after pleading guilty to wire fraud conspiracy. Similarly, in October 2024, David Carmona, the founder of the fraudulent crypto scheme IcomTech , was sentenced to 10 years in prison after being convicted of operating a multimillion-dollar crypto Ponzi scheme. Operation Level Up Aims to Protect Crypto Investors The FBI has been stepping up its efforts to combat cryptocurrency fraud, particularly targeting Ponzi schemes and deceptive investment platforms . The agency’s “Operation Level Up” initiative has reportedly prevented around $285 million in potential crypto fraud losses between January 2024 and January 2025. With scams becoming more sophisticated and exploiting emerging technologies like AI, regulators continue to warn investors to remain cautious and conduct thorough due diligence before committing funds to crypto-related ventures. The post Las Vegas Man Charged in $24M AI-Driven Crypto Mining Scam appeared first on TheCoinrise.com .
