SEC Sues Crypto Executive Over Alleged $198 Million Scheme
The U.S. Securities and Exchange Commission (SEC) charged PGI Global CEO Ramil Palafox with running a $198 million crypto Ponzi scheme. Palafox allegedly misled investors with promises of AI-driven trading and guaranteed returns, misappropriating over $57 million for personal use. The SEC's complaint states that from January 2020 to October 2021, Palafox marketed "membership packages" claiming returns of up to 200% through a non-existent trading platform. Instead, funds were used to sustain a Ponzi scheme and finance Palafox's lavish lifestyle, including a $1.7 million home and luxury cars. The SEC seeks asset recovery from four relief defendants, including Palafox's family members, and requests a permanent ban on his participation in crypto-related securities offerings. Federal prosecutors have also indicted him in a related criminal case.
