A Brazilian citizen accused of orchestrating a $290 million cryptocurrency fraud scheme has been extradited from Switzerland to the US, the place he faces a 13-count indictment for wire fraud and conspiracy.
Douver T. Braga, 48, appeared in U.S. District Court docket in Seattle on February 21 and pleaded not responsible to all expenses. His trial is scheduled for April 28, 2025, earlier than U.S. District Decide Tana Lin.
Braga is alleged to have operated Commerce Coin Membership (TCC), a cryptocurrency buying and selling platform that prosecutors declare was a Ponzi scheme.
In response to Performing U.S. Legal professional Teal Luthy Miller, Braga lured hundreds of buyers by promising income by way of subtle bitcoin buying and selling. As a substitute, authorities say, new investor deposits had been used to pay earlier buyers, a trademark of Ponzi schemes.
Allegations of a World Crypto Fraud Scheme
In response to the indictment, the scheme started in 2016 and spanned a number of international locations. Braga and his co-conspirators promoted TCC as a profitable funding alternative, claiming that its proprietary software program might generate income from bitcoin worth fluctuations.
Buyers had been additionally incentivized to recruit others, successfully turning TCC into an unlawful multi-level advertising and marketing operation.
In actuality, prosecutors say, no buying and selling occurred. Buyers got entry to an internet portal to trace their accounts, however the knowledge was fictitious.
The U.S. Legal professional’s Workplace alleges that Braga misappropriated a minimum of $50 million in bitcoin from buyers between December 2016 and July 2019. By early 2018, TCC shut down U.S. investor accounts, stopping many from withdrawing their funds.
“Mr. Braga allegedly ran a fraud scheme that harkens again greater than a century, however he up to date his ‘Ponzi’ scheme with the new new factor: bitcoin,” Miller mentioned. “The sufferer buyers have waited years to see justice.”
Worldwide Promotion and Tax Evasion Allegations
Braga traveled extensively to advertise TCC, showing at occasions in Thailand, Nigeria, and Macau. He boasted that TCC had over 126,000 members in 231 international locations. Social media campaigns and promotional movies additional fueled investor curiosity.
In the meantime, Braga allegedly didn’t report his illicit earnings to U.S. tax authorities.
“The kind of scheme Mr. Braga is charged with working shouldn’t be new, he simply used the attract of a flashy new expertise to obscure the well-worn rip-off,” mentioned W. Mike Herrington, Particular Agent in Cost of the FBI’s Seattle subject workplace.
Authorized Proceedings and Potential Penalties
Braga faces 12 counts of wire fraud and one rely of conspiracy to commit wire fraud. Every cost carries a most sentence of 20 years in jail. The case was investigated by the FBI and the IRS Prison Investigation division.
The Division of Justice’s Workplace of Worldwide Affairs assisted in securing Braga’s extradition. His subsequent courtroom look is scheduled for later this 12 months as he awaits trial.
