Massive Bitcoin scam: four crooks allegedly embezzled nearly $300 million

Four people have allegedly managed to defraud nearly 295 million dollars from 100,000 investors around the world: they have just been the subject of a complaint from the Securities and Exchange Commission (SEC), the American financial market supervisory authority. , reports The Wall Street Journal, Friday, November 4. This is the founder and three promoters of the company Trade Coin Club. According to the regulator, the cryptocurrency membership club operated like a Ponzi scheme – named after notorious Italian con-man Charles Ponzi – which involves rewarding early investors with funds from newer subscribers. .

For two years, the Trade Coin Club reportedly raised 82,000 bitcoins (corresponding to $295 million in 2018) by promising its 100,000 victims profits from a crypto-asset trading bot. To attract its customers, the company had a strong argument: it promised a minimum daily return of 0.35%.

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The equivalent of $55 million collected personally by the founder

But in fact, the founder, Douver Torres Braga, used the money received for his own account and to pay a network of promoters, including Joff Paradise, Keleionalani Akana Taylor and Jonathan Tetreault, who were also targeted by the complaint of the DRY. These four people would have personally received huge sums: 8,396 bitcoins, corresponding to 55 million dollars at the time of the events for Douver Torres Braga, 158 and 735 bitcoins, for the three others, corresponding to amounts oscillating between 0.6 and 2, $6 million.


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The facts would have taken place between 2016 and 2018, a period when bitcoin attracted many covetousness since it went from 1,000 to 20,000 dollars in a few months. The SEC said the four individuals violated federal securities laws, including rules relating to fraud, securities registration and broker registration. Our colleagues failed to reach the four interested parties for comments.


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