Kromer’s Crypto Scam: A Broadband Project Gone Wrong
The Promise of Connectivity
In Lovelock, Nevada, a well-intentioned plan was set in motion: taxpayer funds from the Nevada Department of Transportation and a USDA grant were allocated to bring high-speed internet to a rural community. The goal was simple—install equipment, hire labor, and upgrade infrastructure.
But behind the scenes, a different story was unfolding.
The Scheme Unfolds
Enter Stephen Kromer, the man behind Uprise Fiber, who allegedly saw the project not as a public service—but as his personal piggy bank.
The Theft
- $1.5 million was funneled into a special account meant for the broadband project.
- Instead of funding labor and equipment, Kromer diverted the money into his own account.
- The bulk of the stolen funds was converted into cryptocurrency and spread across exchanges like Coinbase, Gemini, and Crypto.com.
The Cover-Up
To hide his tracks, Kromer altered financial records, submitting a fake ledger to the USDA. The documents claimed all expenses were legitimate—when in reality, they were lining his pockets and crypto wallets.
The Legal Fallout
Federal prosecutors didn’t take kindly to the scheme.
The Charges
- 16 federal crimes, including:
- Theft of government property
- Fraud against a federal program
- Money laundering via cryptocurrency
- Submission of false documents
- 31 state charges mirroring the federal allegations
Current Status
- House arrest with GPS monitoring—Kromer is confined but not free.
- Federal trial set for after July 7, while a state trial looms in June 2027.
- Civil lawsuits from contractors left unpaid are on hold, pending the outcome.
A Cautionary Tale
This case exposes a harsh truth: Public funds meant for rural development can become targets for fraud, especially when new financial tools like crypto enter the mix.
Without proper oversight, even the most well-meaning projects can go off the rails—leaving communities in the dark, both literally and figuratively.
