The U.S. Securities and Exchange Commission, along with federal prosecutors, have charged a man accused of launching a cryptocurrency scheme that defrauded 90,000 individuals out of $200 million by promising profits from Bitcoin and forex trading.
On April 22, the SEC announced charges against Ramil Palafox, a dual U.S.-Philippines citizen, alleging he misused more than $57 million in investor funds collected through his company, PGI Global, between January 2020 and October 2021.
The SEC claimed that Palafox operated a “Ponzi-like” scheme using a multilevel marketing structure until PGI Global collapsed in 2021. He allegedly attracted investors with misleading promises of crypto expertise and a so-called AI-driven auto-trading platform.
According to the SEC, Palafox held extravagant events in Las Vegas and Dubai to attract new investors, offering referral rewards for recruiting others. He also used investor funds to pay earlier participants and enrich himself, further fueling the scheme.
The SEC alleged that Palafox organized extravagant gatherings in Las Vegas and Dubai to attract new participants, offering referral incentives for bringing in others. He then used investor funds to pay earlier investors, promote the scheme, and personally profit from the proceeds.
“Palafox lured investors by promising guaranteed returns from advanced cryptocurrency and forex trading,” said Scott Thompson, associate director of the SEC’s Philadelphia office. “But instead of investing the funds, he spent millions on luxury cars, watches, and homes for himself and his family.”
The SEC has charged Palafox with breaching anti-fraud and registration rules under federal securities laws. It is pursuing a permanent injunction to prohibit him from selling securities or crypto assets in the future, along with demands for repayment of illicit profits and civil penalties.
Justice Department Initiates Dual Legal Actions
The SEC’s complaint is proceeding alongside a separate case filed by the U.S. Attorney’s Office for the Eastern District of Virginia, which has indicted Ramil Palafox on criminal charges.
Federal prosecutors, in a sealed indictment filed on March 13, charged Palafox with wire fraud, money laundering, and conducting illegal monetary transactions.
Prosecutors claimed Palafox deceived investors by falsely promising daily returns of 0.5% to 3% through Bitcoin trading, while concealing critical details about PGI’s earnings, licensing status, and actual business operations.
The indictment stated that Palafox assured investors the company’s crypto exchanges were generating significant profits and claimed that “his traders could earn money whether Bitcoin’s price was rising or falling.”
However, the Justice Department claimed that the company never used the majority of investor funds for Bitcoin purchases or trading, causing many investors to lose part or all of their money.
If convicted, Palafox would forfeit property listed in the indictment, including more than $1 million in cash, 17 vehicles—among them two Teslas, a Ferrari 458 Speciale, two Lamborghinis, and two Porsches—as well as numerous designer bags, wallets, shoes, jewelry, and luxury watches.
Several affiliated companies were involved in the scheme, including Praetorian Group International Trading Inc., whose website was seized by the U.S. Department of Justice in 2021, prompting the UK High Court to shut down its UK-based operations.
This marks the agency’s first crypto-related case under its crypto-supportive SEC Chair, Paul Atkins, who officially took office on April 22.
In January, the SEC filed a case against Nova Labs, alleging it sold unregistered securities through devices used to mine the Helium (HNT) token. By April, the case was settled, with Nova Labs agreeing to pay a $200,000 civil penalty, leading to the lawsuit’s dismissal.
