Thomas Daniels
After being extradited from Switzerland, a Brazilian national has shown up in U.S. District Court in Seattle to face charges in connection with a $290 million Bitcoin investment scam. The U.S. Department of Justice said in a press statement that Douver T. Braga entered a not guilty plea to a 13-count indictment that includes conspiracy and wire fraud charges related to the Trade Coin Club (TCC) scam.
An International Crypto Ponzi Scheme
The 48-year-old Braga is accused of running TCC while living in Florida between 2016 and 2021. Using a unique Bitcoin trading program, the platform, which is allegedly based in Belize, drew over 126,000 participants from 231 countries with the promise of large rewards. Investigators, however, discovered no proof that such a platform existed.
According to court filings, investors gave TCC more than 82,000 Bitcoins (BTC), which were worth over $290 million at the height of the operation. Braga allegedly embezzled at least $50 million in Bitcoin instead of engaging in lawful trade, moving the money to accounts he controlled between December 2016 and July 2019.
Tax evasion, fraud, and legal repercussions
According to U.S. Attorney Teal Luthy Miller, the plan was a conventional Ponzi scheme in which money from newer participants was used to pay early investors. Throughout 2017, Braga gave talks in Thailand, Nigeria, and Macau to promote TCC globally.
By the end of 2017, investors started to complain about withdrawal issues. Several investors, including those in Washington state, were impacted when TCC closed its U.S. operations and terminated user accounts in January 2018.
Additionally, prosecutors claim significant tax evasion, exposing Braga’s underreported high cryptocurrency earnings:
- 2017: claimed $152,298 in income after receiving $30.5 million in Bitcoin.
- 2018: reported earning $73,473 and received $13.1 million in Bitcoin.
- 2019: Reported earning $72,870 after receiving $10 million in Bitcoin.
Braga could be sentenced to up to 20 years in prison if found guilty of 12 counts of wire fraud and one count of conspiracy to commit wire fraud.
Crackdown on Crypto Fraud Worldwide
This investigation is a component of a stepped-up global effort to combat bitcoin fraud.
A $3.5 million USDT wallet connected to the Rainbowex trading Ponzi scheme was seized by Argentine authorities in December 2024, and other cryptocurrency wallets and bank accounts connected to the scheme were also frozen.
After masterminding a $15 million bitcoin Ponzi scheme, disbarred California lawyer David Kagel, 86, was sentenced to five years of probation and forced to pay $13.94 million in restitution in October 2024.
These indictments demonstrate how law enforcement is focusing more on financial crimes involving cryptocurrencies, using cutting-edge tracking tools and international collaboration to confiscate false assets and prosecute offenders.
