Nevada man faces 280 years after alleged $24 million crypto Ponzi scheme

A Nevada man is facing a potential 280-year federal prison sentence after prosecutors alleged that he used a flashy artificial intelligence crypto pitch to solicit millions from investors.

The conviction underscored how excitement around digital assets can prove costly when promised returns seem far better than the reality, Futurism reported.

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Prosecutors in Nevada say Las Vegas resident Brent Kovar operated a supposed crypto business as a $24 million Ponzi scheme. 

Kovar persuaded roughly 400 people to invest in a company he claimed was worth hundreds of millions of dollars.

According to the U.S. Attorney's Office, the business "purportedly used artificial intelligence software on a supercomputer to mine cryptocurrency and verify other cryptocurrency transactions."

Prosecutors said Kovar promised fixed annual returns of 15% to 30%, along with a 100% money-back guarantee. 

Authorities alleged those payouts came from newer investors rather than legitimate profits.

On Aug. 24, the U.S. Attorney's Office for the District of Nevada issued a press release stating that Kovar was "found guilty of 11 counts of wire fraud; two counts of mail fraud; and two counts of money laundering."