On April 23, the U.S. Securities and Exchange Commission (SEC) and federal prosecutors accused a man of launching a cryptocurrency fraud scheme that deceived approximately 90,000 people, involving up to $200 million, promising high returns from Bitcoin and forex trading.
The SEC stated on April 22 that it has filed charges against Ramil Palafox, a dual national of the U.S. and the Philippines, alleging he illegally misappropriated over $57 million in investor funds through his company PGI Global between January 2020 and October 2021. The regulatory body claimed Palafox operated using a multi-level marketing (MLM) model and implemented a "Ponzi-style" scheme until the company collapsed in 2021. The SEC said he attracted investors through "false cryptocurrency industry expertise and a supposed AI automated trading platform".
Scott Thompson, deputy director of the SEC's Philadelphia office, stated: "Palafox attracted investors with promises of 'guaranteed' profits from complex crypto asset and forex trading, but in reality, he never conducted any trades and instead used millions of dollars to purchase cars, watches, and properties for himself and his family." The SEC is accusing Palafox of violating anti-fraud and registration provisions of federal securities laws, seeking a permanent injunction to prevent him from selling securities and crypto assets in the future, while also demanding the return of illegal proceeds and civil penalties.
