A Brazilian citizen appeared in U.S. District Court in Seattle following extradition from Switzerland to face $290 million Bitcoin investment fraud charges.
According to the press release from the US Department of Justice, Douver T. Braga pleaded not guilty to a 13-count indictment involving wire fraud and conspiracy related to the Trade Coin Club (TCC) scheme.
Braga, 48, operated TCC from 2016 to 2021, primarily while residing in Florida. The platform, purportedly based in Belize, attracted over 126,000 members across 231 countries by promising returns through Bitcoin (BTC) trading software.
However, investigators found no evidence of any trading platform or software existing.
Bitcoin fraud involved 82,000 BTC
The indictment reveals that investors entrusted more than 82,000 Bitcoin, valued at over $290 million during the investment period, to TCC.
Braga allegedly misappropriated these funds, transferring at least $50 million in Bitcoin to accounts under his control between December 2016 and July 2019.
Acting U.S. Attorney Teal Luthy Miller characterized the operation as a traditional Ponzi scheme, where early investors were paid using deposits from newer participants. Braga promoted TCC globally, conducting presentations in Thailand, Nigeria, and Macau throughout 2017.
The scheme began surfacing in late 2017 when investors reported difficulties accessing their funds. By January 2018, TCC announced its cessation of U.S. operations and canceled user accounts, affecting several investors in Washington state.
Federal investigators shared details of major tax evasion, with Braga allegedly failing to report substantial cryptocurrency earnings:
- 2017: Received $30.5 million in Bitcoin, reported $152,298 in income
- 2018: Received $13.1 million in Bitcoin, reported $73,473 in income
- 2019: Received $10 million in Bitcoin, reported $72,870 income
The defendant faces 12 counts of wire fraud and one count of conspiracy to commit wire fraud, each carrying a maximum 20-year prison sentence if proven guilty.
This case joins a growing list of major cryptocurrency fraud prosecutions. In December 2024, Argentine authorities seized a $3.5 million USDT wallet connected to the Rainbowex trading Ponzi scheme. They also froze additional crypto wallets and bank accounts of suspected participants.
In October 2024, disbarred California attorney David Kagel, 86, received five years of probation and was ordered to pay $13.94 million in restitution for operating a cryptocurrency Ponzi scheme that defrauded investors of approximately $15 million.
The series of prosecutions shows law enforcement’s increasing focus on cryptocurrency fraud across international jurisdictions. The agencies are also collaborating and using various methods to track and seize the crypto involved in these financial crimes.
