The U.S. Department of Justice (DOJ) extradited a Brazilian national from Switzerland between 2016 and 2021, bringing him to the United States.
According to the DOJ, the Brazilian citizen appeared in the U.S. District Court in Seattle, where he faces 13 counts of wire fraud and conspiracy related to his Bitcoin investment scheme. Authorities claim that the 48-year-old defendant, Dover Braga, resided in Florida during much of the fraudulent activity from 2016 to 2021.
In the DOJ indictment, Braga is accused of operating a Bitcoin investment scheme which was a front for a Ponzi scheme and an illegal multi-level marketing operation. A grand jury returned the indictment in October 2022, following the arrest of the suspect in Switzerland.
Braga pleaded not guilty to the charges, and the trial, presided over by U.S. District Judge Tana Lin, is scheduled to commence on April 28, 2025.
DOJ Extradites Suspect in $290 Million Fraud Scheme
According to the DOJ indictment, Braga and his accomplices conspired to create a cryptocurrency trading and investment platform called Trade Coin Club (TCC), which had a physical office in Belize. In 2016, Braga, along with his co-conspirators, began promoting TCC, promising investors they could earn money by investing Bitcoin on the platform.
Braga informed investors that the platform featured sophisticated software that would allow them to profit from the volatile prices of leading digital assets. He also assured investors that those who invited new users to join the platform would receive rewards and percentages. In reality, the platform lacked any sophisticated software, and the platform itself did not exist. Early investors were paid back with funds from new investors, characteristic of a Ponzi scheme.
The DOJ indictment also mentioned that Braga traveled to Thailand in March 2017 and to Nigeria and Macau in May 2017. The platform advertised on social media and events, with Braga claiming in certain instances that the platform operated in Thailand as of May 2017. The platform had approximately 126,000 members across 231 countries and regions.
The DOJ noted that through his false promises, he lured thousands of people to entrust him with approximately 82,000 BTC, valued at $290 million at that time, with most of them depositing it into TCC. He also layered the criminal activity by creating a website for users to track their investments. However, it turned out that the website was fictitious, and no trading activities took place.
According to authorities, Braga began misappropriating investors’ funds, with records showing that he took at least $50 million worth of BTC from December 2016 to July 2019. However, trouble began when investors requested their funds in 2017 and early 2018. In January 2018, TCC informed investors that it would cease operations in the U.S. and indicated it would cancel their accounts.
Investigation Uncovers Braga’s Tax Crimes
According to authorities, Braga profited from his crimes while failing to report his income to the Internal Revenue Service (IRS). They stated that in 2017, he gained Bitcoin worth $30 million but reported only $152,298 in income that year. The following year, he earned $13 million in BTC but told the IRS he made $73,473 that year. In 2019, he earned $10 million in Bitcoin but reported $72,473.
A special agent in charge of the FBI’s Seattle field office stated that the crimes Braga is accused of are new, and he merely used new technology as a cover to defraud investors. “While victims in this case await and wonder about the fate of their investments, he spent millions for his personal use. This case demonstrates the FBI’s and our partners at the IRS Criminal Investigation’s commitment to holding fraudsters accountable, no matter where they are in the world,” he said.
U.S. Attorney Teal Luthy Miller also commended the FBI, IRS, and other federal partners for their assistance in resolving this case. “Victim investors have waited years to see justice. I commend the diligent work of the FBI and IRS Criminal Investigation’s federal partners on this case,” the U.S. Attorney stated.
Braga currently faces 12 counts of wire fraud, representing 12 wire transfers made by investors to TCC to deposit into their accounts on the platform. He is also charged with conspiracy to commit wire fraud. If convicted, Braga could face a maximum sentence of 20 years in prison for each count.
