DOJ Charges Brazilian Man in $290M Bitcoin Ponzi Scheme

Highlights:

• A Brazilian man was extradited for a $290 million Bitcoin fraud and now faces multiple charges in a US court.
• The suspect tricked investors with a fake crypto platform that never existed.
• The accused could face up to 20 years in prison for each charge.

A Brazilian national, Dover Braga, has been extradited to the United States from Switzerland by the United States Department of Justice (DOJ). The U.S. District Court sued the defendant for running a fraudulent Bitcoin investment scheme from 2016 to 2021. He faces a 13-count indictment and appeared before the U.S. District Court in Seattle. The charges include conspiracy and wire fraud.

The DOJ has extradited Brazilian national Dover Braga from Switzerland to face charges in a $290 million crypto fraud case. He allegedly scammed thousands of victims between 2016 and 2021 and is now facing a 13-count indictment. #CryptoFraud #DOJ

— FartFy News (@fartfy_news) February 22, 2025

According to authorities, Braga lived in Florida during the years he carried out the fraud. Braga pleaded not guilty to the charges, and his trial is set for April 28, 2025, before U.S. District Judge Tana Lin.

Allegations of Ponzi Scheme and Investor Deception

The DOJ report states Braga and his co-conspirators created a cryptocurrency investment platform, called Trade Coin Club (TCC), in 2016. The platform, they claimed, had advanced trading software that could earn returns. In addition, Braga promised further rewards if existing investors brought in new users. However, according to the DOJ, TCC had no real trading system.

Braga and associates, however, used investors’ funds to pay out older investors, and the scheme mimicked the structure of a Ponzi scheme. In addition, Braga traveled to different countries such as Thailand, Nigeria, and Macau to promote the TCC. He said the platform had over 126,000 members in 231 countries.

Some investors deposited Bitcoin, believing they would make profits. The DOJ reported that Braga convinced thousands of investors to deposit a total of 82,000 BTC. At the time, this amount was valued at approximately $290 million. To maintain the illusion of a legitimate operation, Braga created an online portal where investors monitored their funds. However, authorities revealed that no real trading activities took place.

The DOJ has stepped up its enforcement actions lately to control the rising fraud involving cryptocurrencies. Recently, the co-founders of HashFlare, a crypto mining service, pleaded guilty to conspiracy to commit wire fraud after the DOJ revealed that the duo misled investors about HashFlare’s mining operations and financial services.

HASHFLARE FRAUD: $400M IN ASSETS FORFEITED

The DOJ nails another major crypto fraud as HashFlare’s Estonian founders plead guilty to wire fraud.

Their scheme pulled in $577 million through fake mining contracts—using falsified dashboards to sell the illusion of returns.

Luxury… pic.twitter.com/dFEPDjCkZx

— Crypto Town Hall (@Crypto_TownHall) February 21, 2025

Financial and Legal Consequences

Between December 2016 and July 2019, Braga allegedly misappropriated at least $50 million in Bitcoin. He transferred these funds into accounts he controlled. However, problems started when investors requested withdrawals in late 2017 and early 2018. TCC later announced that it was ceasing operations in the United States. It also informed investors that their accounts would be canceled.

Authorities also accused Braga of failing to report his income to the Internal Revenue Service (IRS). In 2017, he received Bitcoin worth $30.5 million but reported only $152,298 in income. The following year, he received $13 million in Bitcoin but reported just $73,473. In 2019, he obtained Bitcoin worth $10 million but claimed only $72,473 as income. Investigators determined that Braga deliberately underreported his earnings to avoid taxes.

The FBI’s Seattle field office stated that Braga used modern technology to disguise a traditional Ponzi scheme. Meanwhile, the IRS Criminal Investigation unit highlighted how he violated U.S. laws regulating multi-level marketing programs. Braga now faces 12 counts of wire fraud and one count of conspiracy to commit wire fraud. If convicted, he could serve up to 20 years in prison for each charge.