The post SEC accuses Ramil Palafox of running $198M crypto fraud appeared on BitcoinEthereumNews.com.

SEC says $57 million spent on luxury goods and homes. Iranian national indicted for operating dark web market Nemesis. Over 400,000 orders processed using only cryptocurrency. The US Securities and Exchange Commission (SEC) has filed charges against Ramil Palafox, a dual citizen of the United States and the Philippines, accusing him of orchestrating a $198 million crypto investment fraud through his company, PGI Global. The case highlights ongoing risks in decentralised finance, where investors continue to fall prey to schemes promising guaranteed profits from unverified cryptocurrency and forex ventures. Palafox allegedly ran a global multi-level marketing operation from January 2020 to October 2021 before the scheme collapsed, leaving investors with substantial losses. SEC claims $57 million used for personal spending According to the SEC’s filing in the Eastern District of Virginia, Palafox presented PGI Global as an AI-powered crypto and foreign exchange trading platform. However, the regulator alleges there was no real trading activity. Instead, over $57 million in investor funds were diverted to purchase luxury goods and real estate for Palafox and his family. The SEC’s complaint seeks the return of misappropriated funds, civil penalties, and a permanent injunction to prevent Palafox from operating future schemes. The structure of PGI Global mirrored that of a classic Ponzi scheme, where older investors were paid returns using capital from new entrants. Operating as an MLM business, it expanded globally by offering recruitment-based commissions and falsely portraying Palafox as a seasoned crypto expert. Criminal proceedings escalate with DOJ involvement In parallel to the SEC’s civil complaint, the US Attorney’s Office has filed criminal charges against Palafox. While specific charges have not been detailed in the SEC press release, the Department of Justice is pursuing the case in federal court, indicating the possibility of significant penalties, including imprisonment. The proceedings mark another chapter…

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Filed under: News - @ April 23, 2025 1:23 pm