SEC traces historical Ponzi scheme, sues Trade Coin Club (TCC) for amassing 80,000 Bitcoins

According to the SEC announcement, on 11/4 Trade Coin Club (TCC) main operators Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault have been sued.

According to the announcement by the SEC, Trade Coin Club TCC's main operators Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault were sued on November 4.

The SEC accused TCC of operating a cryptocurrency Ponzi scheme from 2016 to 2018, raising over 82,000 bitcoins, valued at approximately $2.95 billion at the time, with over 100,000 investors worldwide participating.

TCC claimed to be a bitcoin automated trading system that could generate a minimum daily return of 0.35%. However, the SEC pointed out that user profits were entirely derived from new funds invested by users, rather than from the so-called robot arbitrage trading, relying on the typical Ponzi scheme operation of using new investors' funds to pay existing investors.

David Hirsch, head of the SEC's Division of Enforcement's Cryptocurrency and Cyber Unit, stated:

"To ensure market fairness and safety, we will continue to use blockchain tracking and analysis tools to assist in catching securities fraudsters."

Due to the international scope of this case, investigations were assisted by various countries, including the Portuguese Securities Market Commission, the Finnish Financial Supervisory Authority, and the Financial Services Commission of South Korea.