Extradition of Brazilian National for Cryptocurrency Fraud

The United States Department of Justice (DOJ) has extradited a Brazilian national from Switzerland related to a $290 million cryptocurrency fraud scheme occurring from 2016 to 2021.

The suspect, Dover Braga, aged 48, appeared at the U.S. District Court in Seattle, facing a 13-count indictment for wire fraud and conspiracy. Braga is accused of executing a Bitcoin investment scheme while living in Florida during the fraudulent period.

Allegations Against Braga

Braga allegedly operated a Ponzi scheme disguised as a Bitcoin investment scheme, running an illicit multilevel marketing operation through a platform called Trade Coin Club (TCC), which claimed to have a physical office in Belize. In 2016, along with accomplices, he promoted TCC, assuring investors of profits from Bitcoin investments.

Braga falsely claimed that TCC utilized sophisticated software to benefit investors and offered rewards for recruiting new users. In truth, TCC had no operational platform or trading activity. Early investors were paid returns using funds from new investors, characteristic of a Ponzi scheme.

Braga promoted TCC globally, visiting places like Thailand, Nigeria, and Macau in 2017. He purportedly claimed TCC had 126,000 members across 231 countries. Through his fraudulent promises, he convinced around 82,000 BTC (valued at $290 million) from investors, many depositing on TCC. However, records suggest at least $50 million in BTC was misappropriated by Braga from December 2016 to July 2019.

TCC eventually ceased operations in January 2018, disappointing investors who sought to withdraw their funds.

Financial Crimes and Tax Evasion

Braga failed to report substantial earnings to the IRS from his crimes. In 2017, he received $30.5 million worth of Bitcoin but reported only $152,298 as income. His reporting was similarly low in subsequent years, inviting scrutiny from investigators.

The FBI’s Seattle field office noted that despite the digital technology involved, Braga’s actions were not new in nature. His case reflects ongoing efforts by federal agencies to combat fraud globally.

Summary of Charges and Potential Penalties

Currently, Braga faces 12 counts of wire fraud and one count of conspiracy to commit wire fraud. If convicted, he could face up to 20 years in prison per charge. The trial is set for April 28, 2025.