Trade Coin Club

đź”´ High Risk

Trade Coin Club was an alleged international cryptocurrency Ponzi scheme that raised more than 82,000 bitcoin—valued at approximately $290–$295 million—from over 100,000 investors by falsely promising automated trading profits. U.S. authorities alleged that nearly all withdrawals were funded by new investor deposits, while millions of dollars in bitcoin were transferred to accounts controlled by organizer Douver Braga and distributed to promoters. Although the case presents serious money-laundering indicators—including commingling, cross-border transfers, and concealment of fraud proceeds—the public criminal charges primarily concern wire fraud and conspiracy, not a standalone money-laundering conviction.

Trade Coin Club was an alleged international cryptocurrency investment fraud that used bitcoin and a multilevel referral structure to attract investors in the United States and other countries. TCC allegedly claimed that an automated trading bot could produce minimum daily returns from bitcoin trading. U.S. prosecutors allege that the promised platform and trading activity did not exist and that later investor deposits were used to pay earlier investors.

Countries Involved

The United States was the principal enforcement jurisdiction because many victims were located there, Braga reportedly lived in Florida during much of the alleged scheme, and the criminal prosecution was brought in the Western District of Washington. The DOJ states that investors deposited bitcoin into TCC accounts from the United States and overseas, while many victims were located in Washington State and other parts of the country. The alleged scheme therefore used U.S. communications, financial activity, victims, and interstate or international electronic transfers.

 

The alleged TCC operation began around December 2016 and continued until approximately 2018, according to the SEC’s civil case. The DOJ’s criminal materials state that Braga received and moved investor bitcoin from at least December 2016 through July 2019. TCC reportedly began experiencing operational problems in late 2017 and early 2018, when investors had difficulty accessing or withdrawing their funds. In January 2018, the operation allegedly announced that it was ceasing U.S. operations and cancelling U.S. investor accounts.

The federal grand jury returned Braga’s indictment in October 2022, although it remained sealed until his arrest in Switzerland. The SEC publicly announced its civil charges on November 4, 2022, describing TCC as an alleged global crypto Ponzi scheme involving more than 100,000 investors and more than 82,000 bitcoin.

Braga was extradited from Switzerland and appeared in U.S. District Court in Seattle on February 21, 2025. At that appearance, he pleaded not guilty. The DOJ’s announcement stated that trial was initially scheduled for April 28, 2025, while the DOJ case page later listed a continued trial date of February 9, 2026. The distinction between the discovery of suspicious conduct and the date of formal reporting is important: the alleged scheme operated years before the SEC charges, indictment unsealing, arrest, and extradition.

Bitcoin (BTC), with TCoin also reportedly introduced during the scheme’s later stages.

The primary alleged offense was a cryptocurrency investment fraud and Ponzi scheme. The DOJ charged Braga with 12 counts of wire fraud and one count of conspiracy to commit wire fraud. The 12 wire-fraud counts corresponded to investor wires or electronic transfers made to TCC accounts. Each charge carries a possible maximum sentence of up to 20 years, although the statutory maximum is not a prediction of the eventual sentence.

The SEC’s related civil complaint alleged securities fraud and the unlawful offer and sale of unregistered securities. The SEC treated TCC membership packages as investment contracts because investors allegedly paid bitcoin with the expectation of receiving profits from the efforts of Braga and other operators. The SEC also alleged that certain promoters acted as unregistered brokers and operated through an illegal multilevel-marketing structure.

For AML purposes, the alleged conduct can be assessed as fraud-generated proceeds movement. The alleged proceeds originated from misled investors, were converted into bitcoin, transferred to accounts controlled by the alleged organizer, and distributed partly to promoters or used for personal enrichment. Those features are commonly relevant to money-laundering investigations because the objective may be to disguise the source, ownership, control, or destination of criminal proceeds.

However, the public criminal charges identified by the DOJ are wire fraud and conspiracy to commit wire fraud. It is more accurate to say that TCC allegedly generated and moved illicit proceeds in a manner presenting money-laundering indicators than to claim that Braga was convicted of money laundering.

The principal entity was Trade Coin Club, a cryptocurrency investment and membership operation that allegedly presented itself as a platform using automated trading software. The DOJ states that TCC had an office in Belize, while the SEC described it as an international offering scheme that solicited investors worldwide.justice+1

The primary individual defendant was Douver Torres Braga, a Brazilian national whom U.S. prosecutors identify as the alleged organizer. Prosecutors claim that Braga promoted TCC internationally, controlled or benefited from investor funds, and received more than $50 million worth of bitcoin.

The SEC also charged three alleged U.S. promoters:

  • Joff Paradise, whom the SEC described as a promoter and self-described U.S. director.

  • Keleionalani Akana Taylor, alleged to have operated a large U.S. promotional network.

  • Jonathan Tetreault, alleged to have promoted TCC and sold membership interests.

The relevant enforcement and investigative entities include the U.S. Department of Justice, the U.S. Attorney’s Office for the Western District of Washington, the Federal Bureau of Investigation, and IRS Criminal Investigation. The DOJ’s Office of International Affairs assisted with Braga’s extradition from Switzerland. The SEC pursued a separate civil case concerning securities-law violations.

The existence of a Belize office or international promoters does not, by itself, establish that those entities or jurisdictions laundered money. It shows the cross-border structure that investigators examined.

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The public record does not establish a court-proven list of money-laundering techniques. Nevertheless, the allegations identify several methods that are relevant to an AML typology.

First, TCC allegedly layered investor proceeds through cryptocurrency wallets and accounts after collecting bitcoin from a large international investor base. The SEC alleged that investor deposits were moved to addresses controlled by Braga and that at least 8,396 bitcoin, valued at approximately $55 million at the time, reached accounts under his control.

Second, the alleged scheme used commingling and recycling of funds. The SEC claimed that 99.96% of investor withdrawals were funded by deposits from other investors rather than trading profits. This movement can obscure the original source of payments because one victim’s deposit may be used to satisfy another victim’s withdrawal.

Third, the alleged operation used multi-level referral commissions. Bitcoin was distributed to promoters and network participants, creating multiple outward flows and making the economic trail more complex. The SEC reported alleged payments of approximately 238.97 bitcoin to Paradise, 735.54 bitcoin to Taylor, and 158.78 bitcoin to Tetreault.

Fourth, the alleged use of an international structure—including Belize operations, global promotion, and a Brazilian organizer arrested in Switzerland—created cross-border fragmentation. International movement is not inherently laundering, but it can complicate tracing, recovery, and jurisdiction.

Finally, prosecutors allege that Braga failed to report substantial cryptocurrency income to the IRS. The DOJ stated that he received bitcoin worth $30.5 million in 2017 while reporting only $152,298 of income, and received further millions in 2018 and 2019 while reporting far smaller amounts. This allegation indicates possible tax-related concealment, but it is not the same as a money-laundering conviction.

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The alleged transaction pattern began with numerous investors depositing bitcoin into TCC-linked accounts. Investors were promised profits from an automated trading program and were provided an online portal that allegedly displayed or represented investment activity. Prosecutors claim that the portal was fictitious and that TCC conducted no genuine trading.

The SEC’s analysis allegedly found that almost all investor withdrawals—99.96%—were funded by deposits from other investors. This pattern is consistent with a classic Ponzi cash-flow structure: incoming funds are used to create the appearance of successful investment performance by paying earlier participants.

Blockchain analysis allegedly identified a second layer of movement in which investor bitcoin was transferred to addresses or accounts controlled by Braga. The SEC alleged that Braga received at least 8,396 bitcoin, while promoters received additional bitcoin through the referral system. These transfers allegedly converted collective investor deposits into personal and promotional proceeds.

The transaction structure was international. Bitcoin was collected from investors in the United States and overseas, while TCC promoted the program through events and online communications in multiple countries. This created a globally distributed victim and transaction base, but blockchain records potentially allowed investigators to trace wallet flows despite the absence of traditional bank intermediaries.

The available public materials do not provide a complete wallet-by-wallet flow chart, a definitive list of exchanges, or proof that mixers, privacy coins, chain-hopping, or shell-company accounts were used. Therefore, those techniques should not be attributed to TCC without additional evidence. The strongest documented transaction indicators are commingling, recycling of new deposits, transfers to insider-controlled accounts, promoter commissions, and the conversion of alleged fraud proceeds into bitcoin.

The SEC announced civil charges on November 4, 2022, against Braga and three alleged U.S. promoters. It alleged that TCC was a fraudulent international offering scheme, that the membership interests were unregistered securities, and that the defendants made materially false statements about the trading bot and returns. The SEC sought injunctions, disgorgement, prejudgment interest, civil penalties, and other relief.

The DOJ separately pursued a criminal case against Braga. A grand jury returned a 13-count indictment in October 2022, consisting of 12 wire-fraud counts and one conspiracy count. Braga was arrested in Switzerland and extradited to the United States in February 2025. He appeared in Seattle, pleaded not guilty, and was presumed innocent under U.S. law.

The FBI and IRS Criminal Investigation investigated the case. The DOJ’s Office of International Affairs assisted with extradition, reflecting cooperation between U.S. authorities and Swiss authorities. The prosecution’s stated theory is that TCC falsely promised cryptocurrency investment returns, operated a Ponzi and multilevel-marketing scheme, and diverted investor bitcoin.

The DOJ’s case page identifies the matter as United States v. Douver Braga, case number 22-cr-00169, and describes TCC as having obtained more than $300 million from over 100,000 victims in the United States and overseas. It also states that Braga allegedly stole more than $50 million worth of deposited bitcoin.

These actions demonstrate U.S. enforcement against the alleged underlying fraud and proceeds movement. They do not, based on the cited public materials, establish a separate final conviction for money laundering.

Trade Coin Club
Case Title / Operation Name:
Trade Coin Club
Country(s) Involved:
United States
Platform / Exchange Used:
Trade Coin Club investment platform and alleged automated bitcoin-trading program. No specific third-party exchange has been publicly identified in the cited sources.
Cryptocurrency Involved:

Bitcoin (BTC), with TCoin also reportedly introduced during the scheme’s later stages.

Volume Laundered (USD est.):
N/A
Wallet Addresses / TxIDs :
Specific wallet addresses and transaction IDs are not identified in the publicly cited SEC and DOJ summaries. The SEC alleged that investor bitcoin was transferred to addresses and cryptocurrency-platform accounts controlled by Braga. Detailed blockchain wallet evidence should be added only after verification from the complaint exhibits, court filings, or an authoritative blockchain investigation.
Method of Laundering:

Alleged commingling and recycling of investor deposits; use of new investor funds to pay earlier investors; transfers of bitcoin to organizer-controlled accounts; distribution of proceeds through promoter commissions; cross-border cryptocurrency collection and movement; and alleged conversion of investor funds into personal or promotional proceeds. The SEC alleged that 99.96% of investor withdrawals were funded by deposits from other investors rather than genuine trading profits. These are money-laundering indicators and proceeds-movement patterns, but the public criminal case is principally based on wire-fraud and conspiracy allegations rather than a standalone money-laundering conviction.

Source of Funds:

Alleged proceeds from fraudulent cryptocurrency investment sales. Investors were reportedly persuaded to deposit bitcoin after being promised profits from an automated trading bot and minimum daily returns. The SEC alleged that TCC did not generate the represented trading profits and instead used later deposits to fund withdrawals and commissions.

Associated Shell Companies:

N/A

PEPs or Individuals Involved:

N/A

Law Enforcement / Regulatory Action:
The SEC filed civil charges in November 2022 against Braga and three alleged U.S. promoters for alleged securities fraud, unregistered securities offerings, and unregistered broker activity. The DOJ separately prosecuted Braga on 12 wire-fraud counts and one conspiracy count. He was arrested in Switzerland, extradited to the United States in February 2025, and pleaded not guilty. The FBI, IRS Criminal Investigation, DOJ, SEC, and DOJ Office of International Affairs were involved in the investigation or enforcement process.
Year of Occurrence:
2022-11-04 — SEC charges publicly announced. The alleged TCC activity occurred primarily from approximately 2016 to 2018, with certain alleged bitcoin transfers continuing through 2019.
Ongoing Case:
Ongoing
AML Network Risk Rating:
đź”´ High Risk
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