According to PANews, a Brazilian citizen appeared in a Seattle federal court following his extradition from Switzerland, facing 13 charges related to wire fraud and conspiracy linked to a Bitcoin investment scheme. The U.S. Department of Justice reported that the individual, Braga, allegedly conspired with others to establish a cryptocurrency trading platform named Trade Coin Club (TCC), based in Belize. Since 2016, Braga and his associates promoted TCC, claiming it would generate profits for investors through a sophisticated software program designed to capitalize on Bitcoin price fluctuations. Investors were also promised earnings by recruiting others to the platform. However, the platform lacked any investment infrastructure or complex software, operating instead as a Ponzi scheme where early investors were paid with funds from later investors.
Braga promoted TCC globally, including events in Thailand in March 2017 and Nigeria and Macau in May 2017. TCC was advertised through social media and videos, with Braga claiming it had up to 126,000 members across 231 countries. By making false promises of complex investments and high returns, Braga convinced thousands to entrust over 82,000 Bitcoins, valued at more than $290 million at the time, to TCC. He continued to mislead investors by creating an 'online portal' for tracking supposed account activities, which was entirely fictitious as no trading occurred.
Braga misappropriated investor funds, transferring at least $50 million worth of Bitcoin to accounts under his control between December 2016 and July 2019. By late 2017 and early 2018, investors were unable to access their funds. In January 2018, TCC announced it would cease operations in the U.S. and cancel investor accounts, affecting many in the Western District of Washington.
Braga allegedly profited significantly but failed to report these earnings to the IRS. In 2017, he received Bitcoin worth $30.5 million but reported only $152,298 in income. In 2018, he declared $73,473 in income while receiving Bitcoin valued at $13.1 million, and in 2019, he reported $72,870 in income against $10 million in Bitcoin earnings.
Braga faces 12 counts of wire fraud related to investor wire transfers to TCC accounts and one count of conspiracy to commit wire fraud. These charges carry a maximum penalty of 20 years in prison.
