COMMENTARY: Nevada’s latest crypto fraud case should be a warning

Last month, a federal jury in Las Vegas convicted businessman Brent Kovar of running a scheme that took $24 million from at least 400 investors. Prosecutors said his company promised returns of 15 to 30 percent and claimed to have hundreds of millions of dollars in cryptocurrency reserves. It did not.

A month earlier, U.S. marshals in Nevada warned residents about scammers posing as deputy marshals and demanding cryptocurrency payments to clear fake warrants. In June, the Nevada attorney general warned about criminals directing victims to cryptocurrency kiosks.

The scams look different. The lesson is the same: Once the money is gone, getting it back can be extraordinarily difficult.

Nevadans reported more than $205 million in cryptocurrency-related losses in 2025, according to the FBI. That number is large enough to get anyone’s attention, but the stories behind it matter more. A retirement account drained. Money set aside for a child or grandchild gone. A victim embarrassed to tell family members what happened.

I have spent much of my career in public service and nonprofit work in Nevada. One thing I have learned is that strong communities do not wait for someone else to solve every problem. Neighbors look out for one another. Families have uncomfortable conversations before a crisis, not after one.

We need more of that when it comes to financial scams.

Criminals are good at creating urgency. They may claim you missed jury duty, that a loved one is in trouble, that your bank account has been compromised or that an investment opportunity will disappear if you do not act immediately. Increasingly, they use cryptocurrency because many people are unfamiliar with it and because transactions can be difficult to reverse.

Older Americans are particularly vulnerable. The AARP reports that adults 60 and older accounted for 86 percent of reported crypto-kiosk scam losses in cases where the victim’s age was known. But nobody is immune. Smart people get scammed because the people running these schemes are practiced at building trust, creating fear and keeping victims from slowing down long enough to question what is happening.

There are a few conversations every Nevada family should have.

First, no legitimate law-enforcement agency is going to call and demand payment through bitcoin, a cryptocurrency kiosk or a gift card. If someone does, hang up and call the agency yourself using a number you find independently.

Second, if someone tells you to withdraw cash and feed it into a crypto kiosk to fix an emergency, stop. Nevada’s attorney general has specifically warned residents about this tactic. Once cash is converted and sent to a scammer’s wallet, recovery can be extremely difficult.

Third, talk about scams before somebody gets targeted. Adult children should check in with aging parents. Parents should talk with young adults who are beginning to invest. Friends should be willing to ask an awkward question when someone suddenly describes an investment that sounds too good to be true.

And if you think you have been scammed, say something quickly. Contact your financial institution, local law enforcement and the FBI’s Internet Crime Complaint Center. Embarrassment helps the criminal, not the victim.

Technology changes. Human nature does not. Scammers still rely on fear, greed, trust and isolation. Cryptocurrency has simply given them another way to move money.

Nevada law enforcement can prosecute fraudsters, and public agencies can issue warnings. Those efforts matter. But the first line of defense is often much closer to home: a conversation with a parent, a friend, a neighbor or a co-worker before they send the money.

Looking out for one another has always been part of what makes a community work. In the face of increasingly sophisticated scams, it may also be what saves someone’s life savings.

Jack St. Martin is chief of staff to the Nevada Assembly Republican Caucus and is an advisory board member of Crypto Watchdog.