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The SEC has filed a lawsuit against the owner, director, and two US-based promoters of Trade Coin Club.

It is alleged that defendants Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault stole about $300 million from customers.

Trade Coin Club was assessed as a Ponzi scam on BehindMLM in 2017.

Five years later, the SEC’s 4 November TCC news release verifies the conclusions of BehindMLM;

Trade Coin Club (was) a fraudulent crypto Ponzi scam that gathered more than 82,000 bitcoin, worth $295 million at the time, from more than 100,000 investors worldwide, including at least 2,500 U.S. investors.

Special note must be made of serial Ponzi marketer J. Ryan Conley, who at the time asserted, “We have tremendous intentions to feed the destitute and assist the goal of TCC.”

In truth, Trade Coin Club, like many MLM Ponzi scams, mainly benefitted its owners and top marketers.

To return to the SEC’s case, the following are the cited histories of the TCC defendants:

The proprietor of Trade Coin Club, Dover Torres Braga, escaped Florida for Brazil (also promoted the WCM777 Ponzi scheme)

Joff Paradise is the US Director of Trade Coin Club and a US national who departed Nevada for Panama (also tied to AirBit Club and AI Trade Ponzi schemes)
Keleionalani Taylor, Trade Coin Club’s highest earner located in the United States, led Trade Coin Club Team Mega (lived in Washington, moved to Hawaii)
Jonathan Tetreault is a Trade Coin Club promoter and earner residing in Massachusetts.
Trade Coin Club was a standard multi-level marketing cryptocurrency Ponzi scam. The scheme utilized to swindle investors were trading, which remains the most popular MLM Ponzi scheme five years later.

(Trade Coin Club) was presented as an opportunity to profit from the purported crypto asset trading bot’s operations.

In truth, Trade Coin Club functioned as a Ponzi scam.

The office and personnel of Braga were shared with “Trade by Trade,” a newly founded crypto asset trading business.

Braga portrayed the two companies as a single entity and generated the misleading impression that Trade by Trade was engaged in crypto asset trading for Trade Coin Club.

Trade Coin Club has no external financing source for investor withdrawals or redemptions, including trading gains.

Instead, only investor deposits were used to cover investor withdrawals.

In particular, 99.96% of investors’ bitcoin withdrawals were financed by contributions from other investors.

Trade Coin Club was founded towards the end of 2016.

Trade Coin Club was pitched by Paradise as a passive investment suitable for those with little cash and no trading expertise.

In a recording from December 20, 2016, Paradise stated, “[s]o what we’ve done is taken a guy who doesn’t know anything about trading, the mom with three kids who is on social security or welfare and has a small amount of bitcoin that someone gave her, and we’ve figured out a way for her to do that and make money every day without losing a dime.”

Paradise falsely claimed that Trade Coin Club was “licensed” and “insured” in many recordings.

In October 2017, the Ponzi scam began to unravel.

Investor deposits in Trade Coin Club peaked in June 2017, while investor withdrawals began to outweigh inflows in September.

Trade Coin Club launched the TCoin exit fraud in November 2017.

This persisted through 2018 when US investments were banned.

Trade Coin Club stated in or around January 2018 that it was withdrawing from the United States and canceling accounts for U.S. citizens. Investors got a notification titled “WE REGRET TO ANNOUNCE THAT WE WILL NO LONGER ACCEPT U.S. INDIVIDUALS” in the Back Office.

Trade Coin Club executed their TCoin exit fraud in February of 2018;

Trade Coin Club declared in February 2018 that it would no longer pay withdrawals in bitcoin and would instead ask investors to withdraw funds in bitcoin.

In May of 2018, Dover Braga cashed out, precipitating the collapse of Trade Coin Club.

On May 25-26, 2018, Braga announced his resignation from Trade Coin Club during an event in Dubai. Many investors were then unable to access their Trade Coin Club Back Office accounts or withdraw bitcoin or TCoin.

Joff Paradise (right) paid out in July, which was two months later.

Paradise announced his resignation from Trade Coin Club on July 11, 2018.

Contrary to the nonsense about mums on social security and ‘feeding the hungry,’ it is not necessary to feed the poor.

Many Trade Coin Club investors were unable to withdraw their crypto assets before the collapse of Trade Coin Club, causing them to lose the majority or all of their investment capital.

Braga and Paradise suppressed internal dissent to undermine BehindMLM’s evaluation of Trade Coin Club and prevent investors from asking unpleasant questions.

Throughout Trade Coin Club’s activities, prospective investors had worries that it was a Ponzi scam.

Braga and Paradise were aware of these issues and made measures to prevent others from voicing them, particularly in Trade Coin Club-related online chat rooms and social media platforms.

In response to a September 19, 2017 post alleging that TCC was a hoax, Paradise sent a different reply to another promoter:

“Man, could you just bring this gang under control?” and “Please remove this member from the group.”

Braga sought to delete unfavorable information about Trade Coin Club and his involvement from the internet.

Braga recruited a search engine optimization professional at the end of 2017 to eliminate unfavorable reviews regarding Trade Coin Club and its colleagues and to boost Braga’s internet reputation.

Braga has also launched a lawsuit against Google in Brazil, requesting the removal of internet information that accuses Braga of operating a Ponzi scheme via Trade Coin Club.

Although I seldom acknowledge it, BehindMLM is frequently the victim of threats and legal action from fraudsters whose activities we expose.

In the instance of Trade Coin Club, where BehindMLM was on the frontlines five years before regulatory action was taken, this may be a challenging situation to manage.

Of the 82,000 investors sought by Trade Coin Club;

Dover Braga stole at least 8396 BTC (~$55 million)
Joff Paradise stole 238.97 BTC minimum.
Jonathan Tetreault misappropriated 158.78 BTC.
Keleionalani Taylor stole 185.55 BTC
The SEC has accused Braga, Paradise, and Taylor of Securities and Exchange Act violations for their roles in operating and/or assisting in operating an MLM Ponzi scheme that defrauded consumers of over 82,000 BTC.

Separately, Jonathan Tetreault (right) has been sued. Two petitions for remedy allege breaches of the Securities Act and Exchange Act.

The SEC filed two complaints against Trade Coin Club on November 3. It is suspected that Taylor and Tetreault are coordinating.

BehindMLM is monitoring both TCC litigations. We’ll keep you posted.

Update, November 6, 2022 – Keleionalani Taylor appears to have transitioned from multi-level marketing crypto Ponzi schemes to politics.

Taylor was running for Oahu Governor in Hawaii as of July 2022:

The primaries in Hawaii were held in August. According to a summary assessment, Taylor earned 12.2% of the vote.

Regardless, I would presume that Taylor’s political ambitions are over now that he is a defendant in a federal securities fraud prosecution.

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