Las Vegas man convicted in $24 million crypto fraud built on 'AI supercomputer' pitch

Brent Kovar, a Las Vegas businessman, was convicted after authorities said he used promises of crypto wealth and an "AI supercomputer" to pull more than $24 million from investors.

The case serves as another reminder that flashy tech language and guaranteed returns can be used to sell old-fashioned fraud, particularly in fast-moving markets such as cryptocurrency.

Here's what to know

Authorities said Brent Kovar marketed Profit Connect to roughly 400 investors as a cryptocurrency mining business powered by what he called an artificial intelligence supercomputer. In Nevada, he was convicted on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering, according to Tom's Hardware.

Investors were offered unusually specific terms, with promised annual returns of 15-30% and a full money-back guarantee, the outlet stated. Prosecutors said the company did not actually produce profits.

Instead of distributing earnings, the operation reportedly used money from new investors to pay earlier ones, matching the pattern of a Ponzi scheme. Profit Connect claimed to hold cryptocurrency reserves worth hundreds of millions of dollars when it had no such assets.

Kovar faces a maximum sentence of 280 years in prison, and it is unclear whether investors will recover their losses.