A Brazilian citizen accused of orchestrating a $290 million cryptocurrency fraud scheme has been extradited from Switzerland to the United States, where he faces a 13-count indictment for wire fraud and conspiracy.
Douver T. Braga, 48, appeared in U.S. District Court in Seattle on February 21 and pleaded not guilty to all charges. His trial is scheduled for April 28, 2025, before U.S. District Judge Tana Lin.
Braga is alleged to have operated Trade Coin Club (TCC), a cryptocurrency trading platform that prosecutors claim was a Ponzi scheme.
According to Acting U.S. Attorney Teal Luthy Miller, Braga lured thousands of investors by promising profits through sophisticated bitcoin trading. Instead, authorities say, new investor deposits were used to pay earlier investors, a hallmark of Ponzi schemes.
Allegations of a Global Crypto Fraud Scheme
According to the indictment, the scheme began in 2016 and spanned multiple countries. Braga and his co-conspirators promoted TCC as a lucrative investment opportunity, claiming that its proprietary software could generate profits from bitcoin price fluctuations.
Investors were also incentivized to recruit others, effectively turning TCC into an illegal multi-level marketing operation.
In reality, prosecutors say, no trading occurred. Investors were given access to an online portal to track their accounts, but the data was fictitious.
The U.S. Attorney’s Office alleges that Braga misappropriated at least $50 million in bitcoin from investors between December 2016 and July 2019. By early 2018, TCC shut down U.S. investor accounts, preventing many from withdrawing their funds.
“Mr. Braga allegedly ran a fraud scheme that harkens back more than a century, but he updated his ‘Ponzi’ scheme with the hot new thing: bitcoin,” Miller said. “The victim investors have waited years to see justice.”
International Promotion and Tax Evasion Allegations
Braga traveled extensively to promote TCC, appearing at events in Thailand, Nigeria, and Macau. He boasted that TCC had over 126,000 members in 231 countries. Social media campaigns and promotional videos further fueled investor interest.
Meanwhile, Braga allegedly failed to report his illicit earnings to U.S. tax authorities.
“The type of scheme Mr. Braga is charged with operating is not new, he just used the allure of a flashy new technology to obscure the well-worn scam,” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office.
Legal Proceedings and Potential Penalties
Braga faces 12 counts of wire fraud and one count of conspiracy to commit wire fraud. Each charge carries a maximum sentence of 20 years in prison. The case was investigated by the FBI and the IRS Criminal Investigation division.
The Department of Justice’s Office of International Affairs assisted in securing Braga’s extradition. His next court appearance is scheduled for later this year as he awaits trial.
