The extradition of a Brazilian national to the United States by the Department of Justice (DOJ) over a $290 million cryptocurrency fraud scheme has made headlines. Dover Braga, a 48-year-old citizen of Brazil, is facing charges of wire fraud and conspiracy related to a Bitcoin investment scheme that he operated between 2016 and 2021. Braga, who resided in Florida during the time of the fraudulent activities, appeared in the United States District Court in Seattle to plead ‘Not Guilty’ to the charges.
The indictment against Braga alleges that he was involved in running a Ponzi scheme and an illegal multilevel marketing scheme through a Bitcoin investment platform known as Trade Coin Club (TCC). Promising investors high returns on their investments in Bitcoin, Braga and his accomplices lured in victims with the false claim of sophisticated software that could generate profits from digital asset trading. In reality, the platform was non-existent, and early investors were paid off with funds from new investors, typical of a Ponzi scheme.
Braga extensively promoted the fake platform globally, visiting countries like Thailand, Nigeria, and Macau to attract more investors. Through deceptive marketing tactics on social media and at events, he managed to convince thousands of individuals to invest a total of 82,000 BTC, equivalent to $290 million at the time. However, instead of trading the funds as promised, Braga misappropriated a significant portion of the investments for personal use.
In addition to the charges of wire fraud and conspiracy, Braga also faces allegations of tax evasion for failing to report his earnings from the fraudulent scheme to the IRS. Despite receiving millions of dollars worth of Bitcoin between 2017 and 2019, Braga significantly underreported his income to the tax authorities. The FBI and IRS have been instrumental in investigating and prosecuting Braga for his crimes, ensuring that justice is served for the victim investors who fell prey to his schemes.
The US Attorney Teal Luthy Miller has praised the efforts of federal partners in resolving the case, emphasizing the importance of holding fraudsters like Braga accountable for their actions. Braga’s trial is scheduled for April 28, 2025, and if found guilty, he could face up to 20 years in prison for each of the 12 counts of wire fraud and conspiracy. The case serves as a reminder of the risks associated with fraudulent investment schemes and the importance of thorough due diligence before investing in any financial opportunity.