A Brazilian citizen accused of orchestrating a $290 million cryptocurrency fraud scheme has been extradited from Switzerland to the USA, 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 costs. His trial is scheduled for April 28, 2025, earlier than U.S. District Choose 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 line with Performing U.S. Legal professional Teal Luthy Miller, Braga lured 1000’s of traders 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 traders, a trademark of Ponzi schemes.
Allegations of a International Crypto Fraud Scheme
In line with the indictment, the scheme started in 2016 and spanned a number of nations. Braga and his co-conspirators promoted TCC as a profitable funding alternative, claiming that its proprietary software program may generate income from bitcoin value fluctuations.
Traders 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. Traders 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 at the very least $50 million in bitcoin from traders 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 recent new factor: bitcoin,” Miller stated. “The sufferer traders 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 nations. 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 is just not new, he simply used the attract of a flashy new know-how to obscure the well-worn rip-off,” stated W. Mike Herrington, Particular Agent in Cost of the FBI’s Seattle area workplace.
Authorized Proceedings and Potential Penalties
Braga faces 12 counts of wire fraud and one depend 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 Legal Investigation division.
The Division of Justice’s Workplace of Worldwide Affairs assisted in securing Braga’s extradition. His subsequent court docket look is scheduled for later this 12 months as he awaits trial.
