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 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.
