SEC Files Lawsuit Against Four Trade Coin Club Executives

A recent court filing shows that the Securities and Exchange Commission (SEC) has charged four individuals in connection with a crypto-themed Ponzi scheme dubbed Trade Coin Club.

According to the filings, the founder of the scheme Douver Torres Braga alongside three U.S promoters by name of Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault reportedly conned investors with claims that their money will be managed by a high-speed trading bot but that not the case.

Therefore the defendants now face charges of stealing investors’ funds using the multilevel program before a United States District Court for the Western District of Washington.

With a promise of 0.35% return on investment, Trade Coin Club controlled by Braga operated in a classic Ponzi scheme style and swindled over 100,000 investors. The program operated between 2016 through 2018. During this period, the scheme raised 82,000 BTC which was valued at $295 million at the time.

As per David Hirsh, chief of the Enforcement Division’s Crypto Assets and Cyber Unit, Braga exploited investors’ interest in investing in digital assets to enrich himself and his associates.

The SEC claims that Braga pocketed about $55 million worth of crypto, while Paradise, Taylor, and Tetreault received $1.4 million, $2.6 million, and $625,000 respectively.

Should the court find the defendants guilty, they’ll be compelled to return the funds and also pay hefty fines for violation of broker-dealer registration provisions. Braga and his associates will also be barred from participating in any crypto investment plan or multi-level marketing venture in the future.

Crypto scams are commonplace in the industry

Unfortunately, Trade Coin Club isn’t the first crypto-themed Ponzi scam in the industry in recent years.

In September, the U.S SEC filed a lawsuit against advisory firms and their founders for misleading investors and operating a ponzi-like digital asset scheme. Also, the regulator has charged 11 persons for their role in promoting the $300 million Forsage global crypto scam.

To ensure a safe and fair market the regulator will deploy blockchain tracing and analytical tools to rid the market of individuals who perpetrate securities fraud.