The SEC accuses the founder of PGI Global in a $198 million cryptocurrency fraud case 🚨

The U.S. Securities and Exchange Commission (SEC) has filed charges against Ramil Palafox, founder of PGI Global, accusing him of leading a fraudulent scheme that defrauded investors out of a total of $198 million. According to the complaint, filed in the U.S. District Court for the Eastern District of Virginia, Palafox used his company to attract over 90,000 investors worldwide, promising high guaranteed returns through alleged cryptocurrency and currency trading.

The scheme, which operated between January 2020 and October 2021, offered membership packages that promised daily returns of up to 3% and a total return of 200%. However, the SEC alleges that these promises were false and that PGI Global operated as a Ponzi scheme, using funds from new investors to pay earlier ones. Additionally, Palafox is accused of diverting over $57 million for personal expenses, including the purchase of luxury cars, properties, and other extravagant items.

The SEC has also noted that Palafox used multi-level marketing tactics to expand the reach of the scheme, incentivizing participants to recruit new investors in exchange for rewards. This approach allowed the fraud to grow rapidly before collapsing in 2021, leaving thousands of victims with significant losses.

In parallel, the U.S. Department of Justice has filed criminal charges against Palafox, including wire fraud, money laundering, and illegal monetary transactions. Authorities have highlighted that Palafox, who has dual citizenship in the United States and the Philippines, used his international network to hide assets and hinder investigations.