SEC cracks down on new $198M crypto fraud as it drops case against Hex’s Richard Heart
The post SEC cracks down on new $198M crypto fraud as it drops case against Hex’s Richard Heart appeared on BitcoinEthereumNews.com.
The US Securities and Exchange Commission (SEC) has filed fresh charges against a crypto scam operator, even as it closed one of its most controversial cases. This marks the SEC’s first major enforcement update under the newly appointed SEC Chair Paul Atkins. The juxtaposition of cases, aggressive prosecution in one and total dismissal in another, depicts the agency’s shifting strategy amid evolving crypto policies. $198 million crypto fraud On April 22, the agency announced enforcement action against Ramil Palafox, the founder of PGI Global, for orchestrating a $198 million fraud involving cryptocurrencies and foreign exchange trading. According to the SEC, Palafox defrauded global investors between January 2020 and October 2021 by promoting PGI Global as a crypto asset and forex trading firm. He promised high returns on “membership packages” and rewarded participants who referred others in a model that resembled multi-level marketing. The complaint reveals that over $57 million in investor funds were misappropriated for personal luxuries, including Lamborghinis. The remaining funds were used to sustain the illusion of returns in a Ponzi-style payout system, which collapsed in 2021. Laura D’Allaird, head of the SEC’s Cyber and Emerging Technologies Unit, noted that Palafox exploited investor trust using the crypto narrative. She said his claims of a proprietary AI-powered trading system were a façade for what was ultimately an international securities fraud. The SEC seeks permanent injunctions, a ban on Palafox from future involvement in securities or crypto-related marketing schemes, and the return of misused funds with interest and civil penalties. SEC drops case against Richard Heart While the SEC intensified action against one player, it officially dropped its lawsuit against Richard Schueler, also known as Richard Heart, founder of Hex, PulseChain, and PulseX. Heart announced the development via X (formerly Twitter), celebrating what he described as a sweeping legal win.…
Filed under: News - @ April 23, 2025 11:21 am