According to the official website of the Department of Justice, Profit Connect founder Brent C. Kovar is accused of using artificial intelligence mining as a guise to commit cryptocurrency investment fraud, illegally absorbing $24 million in funds, involving at least 400 investors. Prosecutors allege that Kovar promised a fixed annual rate of return of 15% -30% and falsely claimed that the investment was covered by FDIC insurance. The actual funds were used to pay old investors, buy houses, give gifts and other non-investment purposes. Kovar faces 12 counts of telegraphic transfer fraud, three counts of mail fraud, and three counts of money laundering, which carries a maximum sentence of 330 years in prison. The case will go to trial on April 8, 2025. The FBI, FDIC OIG, and IRS-CI are jointly investigating. The case is being prosecuted by Assistant U.S. Attorney Daniel Schiess.