Profit Connect Founder Charged with $24M Crypto Fraud
Date: 2025-02-17 Author: Henry Casey Categories: BUSINESS
From 2017 to 2021, Bren Kovar ran Profit Connect, advertising it as a platform that uses artificial intelligence to mine and verify cryptocurrency transactions. He promised investors a steady return of 15% to 30% per year and full protection of their invested funds.
Kovar actively used various marketing tools to attract investors, including a website, YouTube videos, and presentations. He also claimed that investments were insured by the Federal Deposit Insurance Corporation (FDIC), which was not true. In reality, client funds were used for personal purposes, funding his lavish lifestyle.
Prosecutors are charging Kovar with intentionally misleading investors, wire fraud, and money laundering through cryptocurrency transactions. If convicted, he faces up to 330 years in prison and a $4.5 million fine.
The Federal Bureau of Investigation (FBI) recently urged investors to do more due diligence on investment projects before investing. According to the agency, its efforts have prevented fraud in the past year, saving $285 million for 4,300 potential victims of crypto scams.
