SEC Accuses Crypto Company Founder of $200 Million Fraud Case, Bitcoin Investment Tycoon Turned Out to Be a Fraudster!
Recently, a $200 million fraud case in the cryptocurrency circle has shocked everyone! Federal prosecutors and regulatory agencies have accused Ramil Palafox, who holds dual citizenship in the United States and the Philippines, of deceiving 90,000 investors through his company PGI Global from January 2020 to October 2021, with the amount involved reaching as high as $200 million.
Palafox took advantage of investors' interest in cryptocurrency, claiming to have expertise and owning an AI-driven trading platform. He promised investors stable profits through cryptocurrency and forex trading, but in reality, these promises were just a carefully orchestrated scam.
However, the funds raised were not used for investment trading but rather became Palafox's "private vault." He misappropriated millions of dollars of investors' money to purchase luxury cars, designer watches, and mansions for himself and his family.
Moreover, he held lavish parties in Dubai and Las Vegas to attract more people into the scheme, even paying bonuses to members who recruited new investors, further expanding the scam. The money from new investors was merely used to fill the previous funding gaps, maintaining this false prosperity.
To lure more people into the trap, Palafox also made enticing high-return promises. He guaranteed a daily return rate of 0.5% to 3% on Bitcoin trading, claiming that his traders could make money regardless of price fluctuations. However, the truth is that most investors' funds were never actually used for Bitcoin trading, resulting in heavy losses for many.
This case is also the first cryptocurrency enforcement action taken by the SEC's new chairman, Paul Atkins, since he took office on April 22. Despite Atkins being known for a "crypto-friendly" regulatory style, the SEC still imposed penalties on Palafox for fraudulent activities, including a permanent ban on selling securities and crypto assets, returning ill-gotten gains, and civil fines.
Previously, Nova Labs was also penalized for cryptocurrency-related issues, and this case serves as a wake-up call once again. The cryptocurrency market may seem full of opportunities, but it actually hides risks. Investors must remain vigilant and not be blinded by high-return promises!
