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{"actor":"system:backfill","investigation_id":"e5327cd4-0ebd-4276-b3b7-8657308bca97","kind":"publish","page_slug":"trade-coin-club","published_at":"2026-05-31T19:53:36.474Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Trade Coin Club","sections":[{"content":"On November 3, 2022, the Securities and Exchange Commission filed a civil complaint in the U.S. District Court for the Western District of Washington (Case No. 2:22-cv-01563) against Douver Torres Braga, Joff Paradise, and Keleionalani Akana Taylor, and a separate related complaint (Case No. 2:22-cv-01567) against Jonathan Tetreault. The SEC alleged violations of the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as failures to register securities and to register as broker-dealers. According to the SEC, Trade Coin Club raised more than 82,000 Bitcoin — valued at approximately $295 million at the time of collection — from more than 100,000 investors worldwide, including at least 2,500 U.S. investors. The SEC's enforcement chief David Hirsch stated: 'We allege that Braga used Trade Coin Club to steal hundreds of millions from investors around the world and enrich himself by exploiting their interest in investing in digital assets.' Tetreault agreed to settle the SEC's charges on November 21, 2022, paying nearly $781,000 without admitting or denying the allegations. Braga and Paradise were served via alternative service by email in May 2024, and Taylor was personally served in Honolulu on June 6, 2023. Default was entered against both Paradise and Taylor in August 2024. On March 6, 2025, the court granted a stipulation to stay all civil proceedings pending the outcome of Braga's parallel criminal case.","heading":"SEC Civil Enforcement Action","severity":"critical","sources":[{"credibility":1,"name":"SEC Press Release: SEC Charges Creator of Global Crypto Ponzi Scheme and Three US Promoters in Connection with $295 Million Fraud","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2022-201"},{"credibility":1,"name":"SEC Litigation Release LR-25571: Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, Jonathan Tetreault","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25571"},{"credibility":1,"name":"SEC Complaint v. Tetreault (No. 2:22-CV-01567)","type":"court_filing","url":"https://www.sec.gov/files/litigation/complaints/2022/comp25571-tetreault.pdf"},{"credibility":2,"name":"CoinDesk: SEC Charges Trade Coin Club Founding Members With Operating a $295 Million Ponzi Scheme","type":"news_article","url":"https://www.coindesk.com/policy/2022/11/04/sec-charges-trade-coin-club-founding-members-with-operating-a-295-million-ponzi-scheme"},{"credibility":2,"name":"Decrypt: SEC Charges Trade Coin Club for $295 Million Bitcoin Ponzi Scheme","type":"news_article","url":"https://decrypt.co/113575/sec-trade-coin-club-bitcoin-ponzi"}]},{"content":"A federal grand jury in the Western District of Washington returned a sealed indictment against Douver Torres Braga on October 5, 2022, the same day a bench warrant was issued. Braga, a Brazilian national who had fled from Florida to Brazil after Trade Coin Club collapsed, was apprehended by Swiss authorities on February 8, 2025, while traveling outside Brazil. He was extradited to the United States and made his initial court appearance in Seattle on February 21, 2025. The indictment charges Braga with twelve counts of wire fraud and one count of conspiracy to commit wire fraud; each wire fraud count carries a maximum penalty of twenty years imprisonment. Braga pleaded not guilty at his arraignment. On March 1, 2025, the court ordered Braga detained pending trial, citing flight risk and concerns about witness intimidation. Trial before U.S. District Judge Tana Lin was scheduled for April 28, 2025. The DOJ's investigation involved coordination with IRS Criminal Investigation. The indictment alleges that between December 2016 and July 2019, at least $50 million in Bitcoin was transferred to accounts Braga controlled, and that TCC did not conduct any actual trading.","heading":"Federal Criminal Indictment and Extradition of Douver Braga","severity":"critical","sources":[{"credibility":1,"name":"DOJ USAO-WDWA: Brazilian Extradited from Switzerland to the United States to Face Indictment Charging Involvement in $290M+ Cryptocurrency Fraud Scheme","type":"regulatory","url":"https://www.justice.gov/usao-wdwa/pr/brazilian-extradited-switzerland-united-states-face-indictment-charging-involvement"},{"credibility":1,"name":"DOJ USAO-WDWA: United States vs. Douver Braga — Case Page","type":"court_filing","url":"https://www.justice.gov/usao-wdwa/united-states-vs-douver-braga"},{"credibility":1,"name":"IRS Criminal Investigation: Brazilian Extradited from Switzerland to Face $290M+ Cryptocurrency Fraud Indictment","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/brazilian-extradited-from-switzerland-to-the-united-states-to-face-indictment-charging-involvement-in-290m-plus-cryptocurrency-fraud-scheme"},{"credibility":2,"name":"BehindMLM: TCC's Douver Braga arrested in Switzerland, extradited to US","type":"news_article","url":"https://behindmlm.com/companies/tccs-douver-braga-arrested-in-switzerland-extradited-to-us/"}]},{"content":"Trade Coin Club presented itself as a passive investment program that deployed participant Bitcoin through an automated trading bot, purportedly executing 'millions of microtransactions' per second and generating returns of at least 0.35% per day for investors. Braga shared office space with an entity called 'Trade by Trade' to create the appearance of a legitimate trading operation. The SEC's complaint alleges that no genuine trading occurred; 99.96% of investor Bitcoin withdrawals were funded by deposits from other investors rather than trading profits, consistent with a classic Ponzi structure. There was no external source of revenue to sustain the promised returns. TCC also incorporated a multi-level marketing referral commission structure under which existing members earned commissions for recruiting new investors, which created additional incentive to grow the investor pool. The program accepted Bitcoin-denominated membership packages. Investor deposits peaked in June 2017. By September 2017, withdrawals exceeded new deposits, placing the scheme under structural strain. In November 2017, operators introduced an in-house token called TCoin as an alternative withdrawal currency. In February 2018, TCC announced it would no longer honor Bitcoin withdrawals and required investors to withdraw in TCoin instead. TCoin subsequently became worthless, effectively completing an exit scam. By May 2018, platform access was disabled for many investors, and Braga had already transferred the bulk of his Bitcoin holdings to controlled accounts.","heading":"Alleged Scheme Mechanics: Fake Trading Bot and Ponzi Structure","severity":"critical","sources":[{"credibility":1,"name":"SEC Press Release 2022-201: Trade Coin Club Ponzi Scheme Charges","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2022-201"},{"credibility":2,"name":"BehindMLM: Trade Coin Club Ponzi scammers sued by SEC (82,000+ BTC)","type":"news_article","url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"credibility":2,"name":"CoinGeek: US SEC cracks down on $295M BTC Ponzi scheme Trade Coin Club","type":"news_article","url":"https://coingeek.com/us-sec-cracks-down-on-295m-btc-ponzi-scheme-trade-coin-club/"},{"credibility":2,"name":"Decrypt: SEC Charges Trade Coin Club for $295 Million Bitcoin Ponzi Scheme","type":"news_article","url":"https://decrypt.co/113575/sec-trade-coin-club-bitcoin-ponzi"}]},{"content":"Douver Torres Braga, a Brazilian national who resided in Florida prior to Trade Coin Club's collapse, created and secretly controlled the program. According to BehindMLM, Braga previously promoted the WCM777 Ponzi scheme before launching Trade Coin Club. He allegedly received at least 8,396 BTC worth approximately $55 million. After the scheme collapsed he returned to Brazil and evaded law enforcement for approximately seven years before his arrest in Switzerland in February 2025. Joff Paradise, a U.S. national who identified himself as 'Director of the United States' for Trade Coin Club and had previously resided in Nevada, served as the program's primary American-facing promoter, appearing at international events and producing promotional videos. He allegedly received at least 238.97 BTC worth approximately $1.4 million. After the collapse, Paradise relocated to Panama. BehindMLM reports connections between Paradise and the AirBit Club and AI Trade schemes. Default was entered against Paradise in the SEC civil case in August 2024 after he evaded service for nearly two years. Keleionalani Akana Taylor, a Washington and Hawaii resident, operated 'Trade Coin Club Team Mega' and was TCC's top U.S. earner. She allegedly received 185.55 BTC. In 2022, the same year the SEC filed charges against her, Taylor ran as a nonpartisan candidate for Hawaii Governor, receiving 12.2% of the primary vote before losing on August 13, 2022. Taylor initially refused to acknowledge U.S. jurisdiction by claiming she was subject only to the 'Hawaiian Kingdom' — a claim with no legal basis — and refused to disclose her residence to SEC investigators. She was personally served in Honolulu on June 6, 2023, and default was entered against her in August 2024. Jonathan Tetreault, a Massachusetts-based promoter, received 158.78 BTC worth approximately $625,000. He settled with the SEC on November 21, 2022, paying $780,795, without admitting or denying the allegations.","heading":"Operator Profiles and Prior Scheme Involvement","severity":"high","sources":[{"credibility":2,"name":"BehindMLM: Trade Coin Club Ponzi scammers sued by SEC (82,000+ BTC)","type":"news_article","url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"credibility":2,"name":"BehindMLM: Trade Coin Club scammers evading service in SEC case","type":"news_article","url":"https://behindmlm.com/companies/trade-coin-club-scammers-evading-service-in-sec-case/"},{"credibility":2,"name":"Ballotpedia: Keleionalani Taylor","type":"other","url":"https://ballotpedia.org/Keleionalani_Taylor"},{"credibility":1,"name":"DOJ USAO-WDWA: United States vs. Douver Braga","type":"court_filing","url":"https://www.justice.gov/usao-wdwa/united-states-vs-douver-braga"},{"credibility":2,"name":"CoinDesk: SEC Charges Trade Coin Club Founding Members With Operating a $295 Million Ponzi Scheme","type":"news_article","url":"https://www.coindesk.com/policy/2022/11/04/sec-charges-trade-coin-club-founding-members-with-operating-a-295-million-ponzi-scheme"}]},{"content":"Trade Coin Club allegedly collected more than 82,000 Bitcoin from over 100,000 investors globally across its roughly 18-month operating period, with at least 2,500 investors located in the United States. Many investors were unable to withdraw their crypto assets before the platform was disabled and lost the majority or entirety of their principal. The introduction of the worthless TCoin token in late 2017 and early 2018 as a mandatory withdrawal currency effectively locked investors out of recovering Bitcoin-denominated balances. Braga is alleged to have hired SEO specialists to suppress critical or negative reviews of Trade Coin Club online and filed lawsuits in Brazil against Google in an effort to remove negative search results. Paradise is alleged to have instructed promoters to remove critical posts from online communities. These suppression efforts delayed public awareness of the scheme's collapse.","heading":"Investor Impact and Collapse","severity":"high","sources":[{"credibility":1,"name":"SEC Press Release 2022-201","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2022-201"},{"credibility":2,"name":"BehindMLM: Trade Coin Club Ponzi scammers sued by SEC (82,000+ BTC)","type":"news_article","url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"credibility":2,"name":"The Block: SEC charges Trade Coin Club in alleged $295 million bitcoin Ponzi scheme","type":"news_article","url":"https://www.theblock.co/post/183226/sec-charges-trade-coin-club-in-alleged-295-million-bitcoin-ponzi-scheme"}]},{"content":"As of the information available through early 2025, the following proceedings are active or concluded: Tetreault's SEC civil case was resolved by settlement in November 2022. Default was entered against Paradise and Taylor in the SEC civil action in August 2024. Braga's SEC civil case was stayed on March 6, 2025, pending the outcome of the parallel DOJ criminal prosecution. Braga's criminal trial before U.S. District Judge Tana Lin in the Western District of Washington was scheduled for April 28, 2025. Braga remained detained pending trial as of March 2025. No verdict or sentencing information is publicly available as of the research date. The case involved coordination between the SEC, DOJ, and IRS Criminal Investigation.","heading":"Regulatory and Criminal Proceedings Status","severity":"high","sources":[{"credibility":1,"name":"DOJ USAO-WDWA: Brazilian Extradited from Switzerland to Face $290M+ Cryptocurrency Fraud Indictment","type":"regulatory","url":"https://www.justice.gov/usao-wdwa/pr/brazilian-extradited-switzerland-united-states-face-indictment-charging-involvement"},{"credibility":2,"name":"BehindMLM: Trade Coin Club scammers evading service in SEC case","type":"news_article","url":"https://behindmlm.com/companies/trade-coin-club-scammers-evading-service-in-sec-case/"},{"credibility":2,"name":"Harvard Law School Forum on Corporate Governance: Top 5 SEC Enforcement Developments","type":"research","url":"https://corpgov.law.harvard.edu/2023/01/08/top-5-sec-enforcement-developments-5/"}]},{"content":"Trade Coin Club was structured as an MLM program in which commissions were paid to existing members who recruited new investors. Members purchased Bitcoin-denominated investment packages. Recruitment commissions were calculated as a percentage of the initial investment made by the recruited member. This structure created financial incentive for existing investors to expand the pool of new capital, accelerating deposit growth during 2016 and 2017 while obscuring the Ponzi dynamics from participants lower in the referral hierarchy. According to the SEC, the scheme operated as an unregistered securities offering because investment contracts were sold without registration, and participants acted as unregistered broker-dealers by soliciting others for compensation.","heading":"MLM Structure and Recruitment Mechanics","severity":"high","sources":[{"credibility":1,"name":"SEC Press Release 2022-201","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2022-201"},{"credibility":2,"name":"BehindMLM: Trade Coin Club Review: Cryptocurrency exchange Ponzi ROIs","type":"news_article","url":"https://behindmlm.com/mlm-reviews/trade-coin-club-review-cryptocurrency-exchange-ponzi-rois/"},{"credibility":2,"name":"Crowdfund Insider: Global Crypto Ponzi: SEC Files Charges Against Trade Coin Club Creator, Promoters","type":"news_article","url":"https://www.crowdfundinsider.com/2022/11/198277-global-crypto-ponzi-sec-files-charges-against-trade-coin-club-creator-promoters/"}]}],"sources_used":[{"credibility":1,"name":"SEC Press Release 2022-201: SEC Charges Creator of Global Crypto Ponzi Scheme","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2022-201"},{"credibility":1,"name":"SEC Litigation Release LR-25571","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25571"},{"credibility":1,"name":"SEC Complaint v. Tetreault (No. 2:22-CV-01567)","type":"court_filing","url":"https://www.sec.gov/files/litigation/complaints/2022/comp25571-tetreault.pdf"},{"credibility":1,"name":"DOJ USAO-WDWA: Brazilian Extradited from Switzerland — Trade Coin Club","type":"regulatory","url":"https://www.justice.gov/usao-wdwa/pr/brazilian-extradited-switzerland-united-states-face-indictment-charging-involvement"},{"credibility":1,"name":"DOJ USAO-WDWA: United States vs. Douver Braga Case Page","type":"court_filing","url":"https://www.justice.gov/usao-wdwa/united-states-vs-douver-braga"},{"credibility":1,"name":"IRS Criminal Investigation: Brazilian Extradited to Face $290M+ Cryptocurrency Fraud Indictment","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/brazilian-extradited-from-switzerland-to-the-united-states-to-face-indictment-charging-involvement-in-290m-plus-cryptocurrency-fraud-scheme"},{"credibility":2,"name":"CoinDesk: SEC Charges Trade Coin Club Founding Members With Operating a $295 Million Ponzi Scheme","type":"news_article","url":"https://www.coindesk.com/policy/2022/11/04/sec-charges-trade-coin-club-founding-members-with-operating-a-295-million-ponzi-scheme"},{"credibility":2,"name":"Decrypt: SEC Charges Trade Coin Club for $295 Million Bitcoin Ponzi Scheme","type":"news_article","url":"https://decrypt.co/113575/sec-trade-coin-club-bitcoin-ponzi"},{"credibility":2,"name":"The Block: SEC charges Trade Coin Club in alleged $295 million bitcoin Ponzi scheme","type":"news_article","url":"https://www.theblock.co/post/183226/sec-charges-trade-coin-club-in-alleged-295-million-bitcoin-ponzi-scheme"},{"credibility":2,"name":"BehindMLM: Trade Coin Club Ponzi scammers sued by SEC (82,000+ BTC)","type":"news_article","url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"credibility":2,"name":"BehindMLM: Trade Coin Club scammers evading service in SEC case","type":"news_article","url":"https://behindmlm.com/companies/trade-coin-club-scammers-evading-service-in-sec-case/"},{"credibility":2,"name":"BehindMLM: TCC's Douver Braga arrested in Switzerland, extradited to US","type":"news_article","url":"https://behindmlm.com/companies/tccs-douver-braga-arrested-in-switzerland-extradited-to-us/"},{"credibility":2,"name":"Harvard Law School Forum on Corporate Governance: Top 5 SEC Enforcement Developments","type":"research","url":"https://corpgov.law.harvard.edu/2023/01/08/top-5-sec-enforcement-developments-5/"},{"credibility":2,"name":"Crowdfund Insider: Global Crypto Ponzi: SEC Files Charges Against Trade Coin Club Creator, Promoters","type":"news_article","url":"https://www.crowdfundinsider.com/2022/11/198277-global-crypto-ponzi-sec-files-charges-against-trade-coin-club-creator-promoters/"},{"credibility":2,"name":"CoinGeek: US SEC cracks down on $295M BTC Ponzi scheme Trade Coin Club","type":"news_article","url":"https://coingeek.com/us-sec-cracks-down-on-295m-btc-ponzi-scheme-trade-coin-club/"},{"credibility":2,"name":"Ballotpedia: Keleionalani Taylor","type":"other","url":"https://ballotpedia.org/Keleionalani_Taylor"}],"summary":"Trade Coin Club (TCC) was a multi-level marketing cryptocurrency program that operated from late 2016 through mid-2018, allegedly collecting over 82,000 Bitcoin valued at approximately $295 million from more than 100,000 investors worldwide. The program falsely promised daily returns of at least 0.35% generated by an automated trading bot; the SEC and DOJ allege no such trading occurred and that investor withdrawals were funded entirely by new investor deposits, constituting a classic Ponzi scheme. In November 2022, the SEC charged four individuals including founder Douver Torres Braga; Braga was subsequently extradited from Switzerland in February 2025 to face a 13-count federal criminal indictment.","timeline":[{"date":"2016-08-01","event":"Trade Coin Club website domain registered; program launched in late 2016","source":"BehindMLM","source_url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"date":"2017-06-01","event":"Investor deposits peak","source":"BehindMLM / SEC complaint","source_url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"date":"2017-09-01","event":"Investor withdrawals begin exceeding new deposits, indicating Ponzi collapse dynamics","source":"BehindMLM / SEC complaint","source_url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"date":"2017-11-01","event":"Trade Coin Club initiates TCoin exit strategy, introducing in-house token to replace Bitcoin withdrawals","source":"BehindMLM","source_url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"date":"2018-01-01","event":"U.S. investors banned from platform","source":"BehindMLM","source_url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"date":"2018-02-01","event":"Trade Coin Club announces it will no longer pay withdrawals in Bitcoin; switches exclusively to TCoin, which subsequently becomes worthless","source":"BehindMLM / SEC complaint","source_url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"date":"2018-05-01","event":"Douver Braga resigns and cashes out; platform access disabled for investors","source":"BehindMLM","source_url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"date":"2018-07-01","event":"Joff Paradise resigns from Trade Coin Club","source":"BehindMLM","source_url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"date":"2022-10-05","event":"Grand jury in Western District of Washington returns sealed indictment against Braga; bench warrant issued","source":"BehindMLM / DOJ","source_url":"https://behindmlm.com/companies/tccs-douver-braga-arrested-in-switzerland-extradited-to-us/"},{"date":"2022-11-03","event":"SEC files civil complaints in Western District of Washington against Braga, Paradise, Taylor (Case 2:22-cv-01563) and Tetreault (Case 2:22-cv-01567)","source":"SEC","source_url":"https://www.sec.gov/newsroom/press-releases/2022-201"},{"date":"2022-11-21","event":"Jonathan Tetreault agrees to settle SEC civil charges, paying approximately $781,000","source":"SEC / CoinDesk","source_url":"https://www.coindesk.com/policy/2022/11/04/sec-charges-trade-coin-club-founding-members-with-operating-a-295-million-ponzi-scheme"},{"date":"2023-06-06","event":"Keleionalani Taylor personally served by SEC in Honolulu, Hawaii","source":"BehindMLM","source_url":"https://behindmlm.com/companies/trade-coin-club-scammers-evading-service-in-sec-case/"},{"date":"2024-05-13","event":"Joff Paradise served via alternative service by email to his attorneys","source":"BehindMLM","source_url":"https://behindmlm.com/companies/trade-coin-club-scammers-evading-service-in-sec-case/"},{"date":"2024-08-16","event":"Court clerk enters default against both Joff Paradise and Keleionalani Taylor in SEC civil action","source":"BehindMLM","source_url":"https://behindmlm.com/companies/trade-coin-club-scammers-evading-service-in-sec-case/"},{"date":"2025-02-08","event":"Douver Torres Braga arrested by Swiss authorities while traveling outside Brazil","source":"DOJ / BehindMLM","source_url":"https://www.justice.gov/usao-wdwa/pr/brazilian-extradited-switzerland-united-states-face-indictment-charging-involvement"},{"date":"2025-02-21","event":"Braga extradited to the United States; makes initial court appearance in Seattle; pleads not guilty to 13-count indictment","source":"DOJ USAO-WDWA","source_url":"https://www.justice.gov/usao-wdwa/pr/brazilian-extradited-switzerland-united-states-face-indictment-charging-involvement"},{"date":"2025-03-01","event":"Court orders Braga detained pending trial due to flight risk","source":"BehindMLM","source_url":"https://behindmlm.com/companies/tccs-douver-braga-arrested-in-switzerland-extradited-to-us/"},{"date":"2025-03-06","event":"Court grants stipulation staying all SEC civil proceedings pending outcome of Braga's criminal trial","source":"BehindMLM","source_url":"https://behindmlm.com/companies/trade-coin-club-ponzi-scammers-sued-by-sec-82000-btc/"},{"date":"2025-04-28","event":"Criminal trial before U.S. District Judge Tana Lin scheduled to begin in Seattle (outcome not publicly confirmed as of research date)","source":"DOJ USAO-WDWA","source_url":"https://www.justice.gov/usao-wdwa/united-states-vs-douver-braga"}]},"v":1}