US District Court in Seattle has indicted Brazilian citizen Douver T. Braga, 48, on charges of $290 million Bitcoin investment fraud related to the Trade Coin Club (TCC) scheme. Braga pleaded not guilty to a 13-count indictment involving wire fraud and conspiracy.

Trade Coin Club Scheme

According to court documents, Braga 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 Involves 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.

“This operation was a traditional Ponzi scheme, where early investors were paid using deposits from newer participants.” – Acting U.S. Attorney Teal Luthy Miller

Investigation and Charges

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. Braga is charged with 12 counts of wire fraud and one count of conspiracy to commit wire fraud, each carrying a maximum 20-year prison sentence if proven guilty.

Tax Evasion and Unreported Income

Federal investigators also shared details of major tax evasion, with Braga allegedly failing to report substantial cryptocurrency earnings:
• 2017: Received $30.5 million in Bitcoin, reported $152,298 in income
• 2018: Received $13.1 million in Bitcoin, reported $73,473 in income
• 2019: Received $10 million in Bitcoin, reported $72,870 income

Increasing Focus on Cryptocurrency Fraud

This case joins a growing list of major cryptocurrency fraud prosecutions. The series of prosecutions shows law enforcement’s increasing focus on cryptocurrency fraud across international jurisdictions. The agencies are also collaborating and using various methods to track and seize the crypto involved in these financial crimes.

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