Cryptocurrency Ponzi scheme exposed! PGI Global CEO Ramiro Parafokas accused of defrauding $198 million!

The U.S. Securities and Exchange Commission (SEC) officially charged PGI Global CEO Ramiro Parafokas on Tuesday, accusing him of orchestrating a $198 million cryptocurrency Ponzi scheme five years ago. Through false promises of artificial intelligence trading, Parafokas misappropriated investor funds, with over $57 million being siphoned off for a lavish lifestyle, including mansions, Lamborghinis, and expensive jewelry.

From 2020 to 2021, PGI Global lured investors into the cryptocurrency and forex markets with bait of up to 200% returns. However, the investors' funds failed to generate the promised returns and could not be withdrawn. The SEC stated that Parafokas concealed his illegal activities through fake trading platforms and manipulated trading data.

This case by the SEC marks the first cryptocurrency-related enforcement action under new Chairman Paul Atkins, demonstrating the regulatory agency's zero-tolerance stance towards the crypto industry. Parafokas faces criminal charges and hefty fines, and the SEC also seeks to permanently ban him from participating in any cryptocurrency or securities activities.