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Man charged in $200 million crypto trading scheme by SEC and feds

Man charged in $200 million crypto trading scheme by SEC and feds

GrafaGrafa2025/04/23 07:00
By:Mahathir Bayena

The US Securities and Exchange Commission (SEC) and federal prosecutors have charged Ramil Palafox with orchestrating a crypto investment scheme that allegedly defrauded around 90,000 investors of $200 million.

The SEC announced on April 22 that Palafox, a dual citizen of the US and the Philippines, misappropriated over $57 million through his firm, PGI Global, from January 2020 to October 2021.

Officials described the operation as “Ponzi-like,” noting it used a multilevel marketing model that promised high returns from crypto trading and claimed to use an AI-powered auto-trading platform.

Palafox held promotional events in Dubai and Las Vegas and offered referral bonuses to participants who recruited others.

Scott Thompson, associate director at the SEC’s Philadelphia office, said Palafox lured investors with promises of guaranteed profits from sophisticated crypto and forex trading.

Instead, Thompson said, he used investor funds to purchase luxury items including cars, watches, and real estate for himself and his family.

The SEC is seeking a permanent injunction barring Palafox from future securities or crypto asset offerings, alongside civil penalties and the return of misused funds.

Meanwhile, the US Attorney’s Office for the Eastern District of Virginia has filed criminal charges, including wire fraud, money laundering, and illegal monetary transactions.

Prosecutors allege Palafox promised daily returns of 0.5% to 3% from Bitcoin (CRYPTO:BTC) trading but failed to use investor funds for actual trading activities and concealed PGI Global’s financial state.

If convicted, Palafox faces the forfeiture of over $1 million in cash, 17 vehicles, and various designer goods.

The Department of Justice previously seized PGI Global’s website in 2021, and the UK High Court ordered the company’s shutdown in the United Kingdom.

This case is the SEC’s first crypto-related enforcement action under new Chair Paul Atkins, who took office on April 22.

The SEC also recently resolved a separate case involving Nova Labs, imposing a $200,000 fine for unregistered securities.

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