SEC Sues Crypto Executive Over Alleged $198 Million Scheme

On Tuesday, the US Securities and Exchange Commission de PGI Global CEO Ramo Ramo Palafox formally charged for alleged runs of a $ 198 million crypto-based Ponzi scheme five years ago, accused him of duping investors with false-driven Rendement.

More than $ 57 million of those funds in Fiat and Bitcoin were abused for the personal use of Palafox and to benefit its immediate employees, the SEC claimed in one rack.

The case against Palafox, submitted to the American court for the eastern district of Virginia, is the first crypto-related enforcement action of the SEC under new chairman Paul Atkins, who was sworn Only a day before.

PGI Global, shortly before Praetorian Group International, ran as a front for non -registered securities sales in fashion words in the crypto industry, according to the SECs complaint.

From January 2020 to October 2021, Palafox brought “membership packages” on the market, which is said to have guaranteed the return of up to 200% via a supposed AI-driven crypto and forex trading platform.

Formally known as PGI Global UK LTD, the Crypto trade company was closed in September 2022 by the UK High Court to operate a fraudulent investment scheme.

Between July 2020 and February 2021, PGI Global collected approximately £ 612,425 (US $ 815,000) from investors.

However, when the promised returns were not discussed, investors could not withdraw their money.

Palafox, located in the US, did not work with the research. The US Department of Justice and the US Department of Treasury seized the website of the company after an order was issued by the US District for the Eastern District of Virginia.

“PGI Global never had an ‘automatic trade’ platform and carried out little or no trade on behalf of investors,” is the court.

Instead, investor funds were reportedly used to support a ponzi-like system of payouts and to finance the extravagant lifestyle of Palafox, including a $ 1.7 million house in Las Vegas, several Lamborghinis and $ 1.18 million in Cartier jewelry.

The complaint explains how Palafox reportedly falsified crypto activity through circular transactions and manipulated dashboards to wrongly show returns and keep investors addicted.

“His false claims of the expertise of the crypto industry and an assumed AI-driven automatic trading platform simply masked an international securities fraud,” said Laura d’Allaird, head of the Cyber ​​Unit of the SEC, in the statement.

The SEC also claims that Palafox has transferred assets pending the collapse of the scheme.

The complaint mentions four assistance capacities, including Palafox’s wife, mother and brother -in -law, and is looking for the return of assets and funds they have received, such as a mortgage payment of $ 320,000, a Range Rover and luxury goods from Louis Vuitton and Hermès.

The agency also asks the court to make a permanent prohibition on the participation of Palafox in Crypto or MLM-related securities offers, together with civil fines and the full disguverement of funds, while federal prosecutors have also charged him in a related criminal case from Virginia.

Published by Sebastian Sinclair