Brazilian Man Charged in $290 Million Crypto Ponzi Scheme Affecting 126,000 Investors

A Brazilian man, Douver T. Braga, has been charged in connection with a massive $290 million cryptocurrency Ponzi scheme that affected over 126,000 investors worldwide. The scheme, which spanned from 2016 to 2021, involved investors being promised high returns through the Trade Coin Club (TCC), a cryptocurrency trading platform that was ultimately revealed to be a fraudulent operation. Braga faces multiple charges of telecommunications fraud and conspiracy linked to his role in orchestrating the scam.

Details of the Ponzi Scheme

According to the indictment, Braga and his co-conspirators set up TCC with the intention of deceiving investors. They falsely claimed that the platform used complex software to generate profits from Bitcoin price fluctuations. However, the platform lacked any genuine investment strategies or software. Early investors were paid returns using funds from later investors, characteristic of a Ponzi scheme.

TCC was promoted globally through various marketing channels, including social media and videos, and Braga claimed the platform had 126,000 members across 231 countries by 2017. The scammers convinced investors to deposit their Bitcoin with TCC by promising them high returns, which ultimately did not materialize. Investors were given access to a fake online portal, where they were able to track non-existent activities.

Between 2016 and 2019, Braga allegedly misappropriated at least $50 million in Bitcoin from investors. As the platform began to collapse, investors were unable to withdraw their funds. In January 2018, TCC announced that it would cease operations in the U.S., leaving many investors in Washington state without recourse.

Legal Actions and Investigations

Bragas fraudulent activities did not go unnoticed, and in 2022, U.S. authorities issued an indictment for his involvement in the scheme. He was arrested in Switzerland and later extradited to the U.S. to face trial. Braga stands accused of 12 counts of telecommunications fraud related to Bitcoin transactions made by investors. Each of these charges carries a potential penalty of up to 20 years in prison.

The investigation into the TCC scam is ongoing, and U.S. authorities, including the IRS Criminal Investigation (CI) division and the FBI, have been working together to gather evidence and bring those responsible to justice. According to W. Mike Herrington, an FBI agent involved in the case, the scam was modernized with Bitcoin but followed the same deceptive principles seen in traditional Ponzi schemes.