DOJ hand over Brazilians to the US over $290 million crypto fraud scheme

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The US Department of Justice (DOJ) handed over Brazilian citizens from Switzerland to the United States over a $290 million cryptocurrency fraud scheme between 2016 and 2021.

According to the DOJ, the Brazilian citizen has appeared in U.S. District Court in Seattle and faces 13 count charges for wire fraud and conspiracy related to his Bitcoin investment scheme. Authorities allege that the accused, 48-year-old Dover Braga, lived in Florida between 2016 and 2021, when he carried out most of his fraudulent activities.

The DOJ accusations accused Braga of implementing a Bitcoin investment scheme that acts as the forefront of the Ponzi scheme along with an illegal multi-level marketing scheme. The large ju court returned the charges in October 2022 and was not sealed after authorities arrested the Swiss suspect.

Braga pleaded “not guilty” to the charges, and the trial, which will be presided by US District Judge Tana Lin, was scheduled for April 28, 2025.

DOJ hand over $290 million fraud suspects to the US

According to DOJ’s indictment, Braga and his accomplice conspired to create a crypto trading and investment platform called the Trade Coin Club (TCC), which has a physical office in Belize. In 2016, Braga began promoting TCC alongside his conspirators. This has promised investors that they can make money by investing in Bitcoin on the platform.

Braga told investors that the platform has sophisticated software that allows investors to make money from the fluctuating prices of key digital assets. He also promised investors specific rewards and percentages to invite new users to the platform. In fact, the platform had no sophisticated software and no platform existed. Investors who were on the platform were repaid with funds from new investors and took the form of a Ponzi scheme.

The DOJ indictment also said that before going to Nigeria and Macau in May 2017, Braga travelled worldwide to promote fake platforms going to Thailand in March 2017. The event featured a platform of approximately 126,000 members in 231 countries.

Through his false promises, DOJ has led thousands of people to entrust him with about 82,000 BTC worth $290 million at the time, most of which have left it at the TCC. I’ve said that. He also created a website for users to track investments by committing criminal acts. However, it turns out that the website is fictional and no trading activity has taken place.

Authorities say Braga began misusing investors’ funds, indicating that between December 2016 and July 2019, it won at least $50 million in BTC. But trouble began in 2017 and early 2018 when investors began asking for funds. In January 2018, TCC notified investors that it had stopped operating in the US and noted that it would cancel its account.

Investigation reveals Braga’s tax crimes

Authorities say Braga profited greatly from his crimes but did not report his income to the Internal Revenue Service (IRS). Authorities said they received $30 million worth of Bitcoin in 2017, but only reported revenue of $152,298 a year. The following year he received $13 million in BTC, but told the IRS he made $73,473 a year. In 2019, he received $10 million worth of Bitcoin, but reported $72,473.

According to a special agent in charge of the FBI Seattlefield office, the crime Braga was charged with was now brand new and used new technology as a cover to fraudulent investors. “The victim in this case was questioning the fate of the investment, but he siphoned millions of dollars for personal use. This case was in the FBI and IRS Criminal Investigations. Our partners demonstrate their decision to hold fraudsters accountable no matter where they are in the world,” he said.

US lawyer Teal Lucy Miller also praised the FBI, IRS and other federal partners for helping them resolve the case. “Victim investors have been waiting for years to see justice. U.S. lawyers praise the FBI and federal partners in the IRS criminal investigation and the hard work of the IRS criminal investigation,” he said.

Braga is currently facing a 12 count wire fraud, representing 12 wire transfers made by 12 investors to the TCC, depositing them into accounts on the platform. He is also faced with a count of conspiracy to commit wire fraud. If convicted, Braga can spend up to 20 years in prison for each charge.