A Brazilian national accused of orchestrating a massive cryptocurrency Ponzi scheme has been extradited from Switzerland to the United States to face federal charges, the Department of Justice announced Friday. Douver T. Braga, 48, appeared before the U.S. District Court in Seattle, where he pleaded not guilty to a 13-count indictment that includes wire fraud and conspiracy.
Braga allegedly led a global scam under the guise of Trade Coin Club (TCC), a bitcoin investment platform that promised lucrative returns through a sophisticated trading algorithm.
Prosecutors claim TCC was, in reality, a Ponzi scheme that used new investor deposits to pay off earlier participants, defrauding tens of thousands of people out of more than 82,000 bitcoin, valued at over $290 million at the time of investment. His trial is scheduled for April 28, 2025, before Judge Tana Lin.
A Global Crypto Fraud Operation
According to the indictment, Braga and his co-conspirators promoted Trade Coin Club as a revolutionary cryptocurrency trading platform that would generate daily profits. He promised investors that a proprietary algorithm would conduct high-speed bitcoin transactions, ensuring consistent gains. Additionally, participants were incentivized to recruit others, forming a multilevel marketing structure that further fueled the scheme’s growth.
Federal prosecutors revealed that TCC had more than 126,000 members across 231 countries. Braga traveled the world promoting the company, hosting events in Thailand, Nigeria, and Macau in 2017. The platform was aggressively marketed through social media campaigns, online videos, and promotional events, luring investors with false claims of daily returns as high as 0.35%.
However, authorities state that no real trading activity ever took place. Instead, investor deposits were used to pay off earlier participants, a hallmark of a Ponzi scheme. The scheme collapsed in early 2018 when participants began experiencing difficulties withdrawing funds. TCC subsequently announced that it was ceasing operations in the United States and shutting down investor accounts.
Lavish Profits and Tax Evasion
While investors suffered massive losses, Braga and his associates allegedly pocketed tens of millions of dollars. Between December 2016 and July 2019, at least $50 million in bitcoin was transferred to accounts under Braga’s control. Prosecutors claim that in 2017 alone, Braga received bitcoin valued at $30.5 million but reported only $152,298 in income to the IRS. The discrepancy continued in the following years: in 2018, he declared just $73,473 despite receiving $13.1 million in bitcoin, and in 2019, he reported $72,870 while obtaining $10 million in cryptocurrency.
The Securities and Exchange Commission (SEC) has also filed charges against Braga and three U.S.-based promoters of TCC—Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault. According to the SEC’s complaint, Braga personally received at least 8,396 bitcoin, worth approximately $55 million at the time, while his co-defendants profited by recruiting investors.
Criminal Charges and Extradition
Braga was indicted by a federal grand jury in October 2022, but the charges were sealed until his recent arrest in Switzerland. The U.S. Department of Justice, with assistance from the FBI, IRS Criminal Investigation, and international authorities, successfully secured his extradition.
“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,” Acting U.S. Attorney Teal Luthy Miller said in a statement. “The victim investors have waited years to see justice.”
FBI Special Agent in Charge W. Mike Herrington of the Seattle field office condemned Braga’s actions, stating, “While the victims in this case waited and wondered about the fate of their investments, he siphoned off millions of dollars for his personal use.”
If convicted, Braga faces up to 20 years in prison for each count of wire fraud. Federal prosecutors emphasized that their investigation remains ongoing and that additional individuals linked to the scheme could face legal action. The case is being prosecuted by Assistant U.S. Attorneys Mike Dion and Phillip Kopczynski.
With Braga now in U.S. custody, authorities continue efforts to recover stolen funds and provide restitution to victims. Meanwhile, financial regulators warn that crypto-related fraud schemes remain prevalent, urging investors to exercise caution when approached with high-return promises. The SEC has issued investor alerts on digital asset scams and pyramid schemes disguised as multi-level marketing programs.
Braga’s trial is expected to shed further light on one of the largest cryptocurrency fraud cases in recent years, with victims spanning across multiple countries.
