A Brazilian man accused of running a big Bitcoin fraud has appeared in a U.S. court in Seattle after being sent from Switzerland.
Douver T. Braga, 48, is facing 13 charges of fraud and conspiracy related to the Trade Coin Club (TCC). The platform claimed to offer high profits but was a Ponzi scheme. However, Braga has said he is not guilty.
A Global Bitcoin Scam That Looked Like an Investment
According to the Department of Justice (DoJ), Braga ran TCC from 2016 to 2021, mostly while living in Florida. The platform, supposedly based in Belize, claimed to use Bitcoin trading software to make profits.
More than 126,000 people from 231 countries joined, investing over 82,000 Bitcoin worth over $290 million.
However, investigators found out that the trading software does not exist. Instead of investing the money, Braga allegedly took at least $50 million in Bitcoin.
Acting U.S. Attorney Teal Luthy Miller said TCC was a classic Ponzi scheme. It paid old investors with money from new ones instead of real profits.
Braga promoted the scheme worldwide, holding events in Thailand, Nigeria, and Macau in 2017. By late 2017, investors started complaining they couldn’t withdraw their money.
In January 2018, TCC shut down its U.S. operations, leaving many investors with huge losses.
Tax Evasion and Fraudulent Earnings
Federal investigators also found that Braga avoided paying taxes on his earnings from the scheme. Even though he made millions in Bitcoin, he reported only a tiny part of his income.
In 2017, he received $30.5 million in Bitcoin but only reported $152,298. He did the same in later years, declaring much less money than he earned.
Braga now faces 12 wire fraud charges and one conspiracy to commit wire fraud. He could get up to 20 years in prison for each charge if found guilty.
A Crackdown on Bitcoin Fraud
Braga’s case is part of a broader crackdown on crypto fraud worldwide. In August 2024, the United States Securities and Exchange Commission (SEC) sued Jonathan and Tanner Adam.
The brothers were accused of allegedly orchestrating a $60 million Ponzi scheme that promised investors returns through a crypto trading bot that never existed.
In the same year, David Caroma, the founder of the fraudulent cryptocurrency scheme IcomTech, was sentenced to 10 years in prison for conspiracy to commit wire fraud.
Authorities are increasing their efforts to track down and prosecute crypto fraudsters, working across international borders to recover stolen funds.
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