SEC Charge Mother-Son Duo for Alleged Crypto ‘Supercomputer’ Ponzi Scheme

The agency said the pair raised over $12 million from investors by promising above-average returns.

AccessTimeIconJul 20, 2021 at 1:41 a.m. UTC
Updated Sep 14, 2021 at 1:27 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

The Securities and Exchange Commission (SEC) has shuttered an alleged scam that promised to generate most of its income from bitcoin mining and invest in cryptocurrencies and other assets, the U.S. agency said Monday. 

According to the SEC’s complaint, 86-year-old Joy Kovar and her son, 54-year-old Brent Kovar, raised over $12 million from at least 277 retail investors through their Las Vegas-based company Profit Connect Wealth Services since May 2018. 

The mother-son duo allegedly told investors that Profit Connect invested in forex, stocks and other assets “to diversify its income stream from the company’s main income source of blockchain mining.” The Kovars touted the ability of a supercomputer and artificial intelligence to generate 20%-30% fixed returns per year with monthly compounding interest. 

Instead, the SEC alleges, the Kovars transferred “millions of dollars to Joy Kovar’s personal bank account,” spent millions of dollars to promote Profit Connect, and made “Ponzi-like payments to other investors.” The SEC says over 90%  of Profit Connect’s funds came from investors. 

Brent Kovar used social media to market the firm’s offerings. In a YouTube video, he presents what he says is a mining card to show the audience “what they look like,” and says his company uses artificial intelligence “to only decode [those mining cards] off the blockchain that actually have transactions.”

The complaint alleges Brent Kovar received almost $353,000 of investor funds, which he used to purchase a home. It also alleges Joy Kovar opened eight accounts at three different banks. 


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.