Brazilian Extradited to U.S. for $290 Million Bitcoin Scheme Charges

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by Giorgi Kostiuk

2 years ago


Douver T. Braga, a Brazilian national, has been extradited from Switzerland to the United States to face charges related to a $290 million Bitcoin investment fraud scheme.

Extradition and Charges

According to a press release by the U.S. Department of Justice, Braga pleaded not guilty to a 13-count indictment accusing him of wire fraud and conspiracy in connection with the Trade Coin Club (TCC) operation while appearing before a U.S. District Court in Seattle on February 21, 2025.

Details of Bitcoin Fraud

Braga allegedly ran the fraudulent platform between 2016 and 2021 while residing primarily in Florida. Though TCC was registered in Belize, it attracted more than 126,000 investors from 231 countries, promising substantial returns through an automated Bitcoin trading system. However, U.S. investigators found no evidence that such a platform or trading software ever existed. According to the indictment, investors entrusted over 82,000 Bitcoin—valued at approximately $290 million during the scheme's active years—to TCC. Prosecutors claim Braga misappropriated a significant portion of these funds, personally transferring at least $50 million in Bitcoin to accounts under his control between December 2016 and July 2019. The fraudulent operation began to unravel in late 2017 as investors encountered difficulties withdrawing their funds. By early 2018, TCC announced the termination of its U.S. operations and abruptly cancelled user accounts, leaving many, including victims in Washington state, without access to their investments. Federal authorities have labelled TCC a classic Ponzi scheme, in which earlier investors were paid using deposits from newer participants rather than legitimate trading profits. Acting U.S. Attorney Teal Luthy Miller described it as a sophisticated deception that targeted victims globally. In addition to the fraud charges, authorities have accused Braga of major tax evasion, alleging he vastly underreported his cryptocurrency earnings. Investigators claim that despite receiving tens of millions of dollars in Bitcoin between 2017 and 2019, Braga declared only a fraction of his actual income. In 2017 alone, he reportedly received $30.5 million in Bitcoin while reporting just $152,298 in income.

It was a sophisticated deception that targeted victims globally.Teal Luthy Miller

Other Fraud Cases

In recent months, authorities have pursued similar cases worldwide. In October 2024, Austria concluded its largest-ever fraud trial, which centred around a sophisticated €20 million crypto Ponzi scheme. The trial, held at the Klagenfurt Regional Court, lasted 60 days and led to five convictions involving eleven suspects from Austria, Croatia, and Italy.

Braga now faces 12 counts of wire fraud and one count of conspiracy to commit wire fraud, each carrying a potential 20-year prison sentence if convicted.

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