PANews reported on February 22 that according to the official website of the U.S. Department of Justice, a Brazilian citizen appeared in the U.S. District Court in Seattle after being extradited from Switzerland. He faced 13 charges of wire fraud and conspiracy related to a Bitcoin investment plan, and was suspected of participating in a cryptocurrency fraud plan of more than US$290 million.
The indictment alleges that Braga conspired with others to create a cryptocurrency trading platform called Trade Coin Club (TCC) with offices in Belize. As early as 2016, Braga worked with others to promote TCC, claiming that investors would make money because TCC had a sophisticated software program that allowed investors to profit from Bitcoin price fluctuations. Braga also promised that investors could make money by referring other investors to the platform. In fact, the platform had no investment platform and no sophisticated software. People who invested early were bought off by later investors like a Ponzi scheme.
Braga promoted TCC around the world: in Thailand in March 2017, Nigeria and Macau in May 2017. TCC was promoted on social media and in videos. At various events, Braga claimed that TCC had as many as 126,000 members in 231 different countries.
Through false promises of complex investments and high returns, Braga induced tens of thousands of people to entrust TCC with over 82,000 bitcoins (worth over $290 million at the time of investment) for custody. Braga continued his misrepresentations by creating an “online portal” where investors could track the alleged activity of their investment accounts. The website was purely fictitious as no trading activity occurred.
Braga misappropriated and misappropriated investor funds. Between December 2016 and July 2019, at least $50 million in Bitcoin was transferred to accounts controlled by Braga.
However, by late 2017 and early 2018, investors were unable to access their funds. In January 2018, TCC announced to investors that it would cease operations in the United States and cancel their accounts. Many of the investors were located in the Western District of Washington.
Braga allegedly made a lot of money but didn’t report it to the IRS. In 2017, he received $30.5 million worth of Bitcoin but only reported $152,298 in income. In 2018, he reported $73,473 in income but received $13.1 million in Bitcoin; in 2019, he reported $72,870 in income but received $10 million in Bitcoin.
Braga was charged with 12 counts of wire fraud related to 12 wire transfers that investors sent to TCC to deposit money into their “accounts.” Braga was charged with one count of conspiracy to commit wire fraud. The charges carry a maximum sentence of 20 years in prison.
