Business owner faces 280-year maximum sentence
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- A federal jury convicted Brent Kovar over a $24 million crypto Ponzi scheme.
- Prosecutors said at least 400 investors were defrauded through the scheme.
- Kovar faces a statutory maximum of 280 years, but a judge will decide his sentence.
Brent Kovar was convicted of fraud and money laundering after taking $24 million from at least 400 investors.
Kovar ran Profit Connect from late 2017 to July 2021, claiming its software mined crypto and verified transactions.
He promised investors fixed yearly returns of 15% to 30%, prosecutors said.
Prosecutors said Profit Connect was not profitable and held no crypto reserves worth hundreds of millions.
They said Kovar used investor money to run the company, buy gifts and purchase a house.
Kovar is scheduled for sentencing on November 30, while the 280-year figure is only the legal maximum.
The case shows how prosecutors can pursue fraud involving businesses that use cryptocurrency claims to attract investors.
