The Federal Bureau of Investigation (FBI) has successfully dismantled a significant cryptocurrency Ponzi scheme known as Trade Coin Club, which defrauded investors of over $290 million. The scheme’s alleged mastermind, Brazilian national Douver T. Braga, was extradited from Switzerland to the United States and appeared in U.S. District Court in Seattle on February 21, 2025. Braga faces a 13-count indictment, including charges of wire fraud and conspiracy.
Operating between 2016 and 2019, Trade Coin Club lured tens of thousands of investors with promises of high returns through a sophisticated bitcoin trading platform. However, the platform functioned as a classic Ponzi scheme, using new investors’ funds to pay earlier investors. Braga and his associates allegedly misappropriated substantial amounts for personal gain, with Braga himself receiving at least $50 million in bitcoin during the scheme’s operation.
This case underscores the FBI’s commitment to combating cryptocurrency-related fraud. Initiatives like “Operation Level Up” have been instrumental in identifying and notifying victims of such scams, aiming to prevent further financial losses. As of January 2025, the FBI has contacted over 4,300 potential victims, saving them an estimated $285 million.
Investors are urged to exercise caution and conduct thorough due diligence before engaging in cryptocurrency investments, as fraudulent schemes continue to evolve in complexity and scale.
