The SEC and Federal Prosecutors Charge Individual in $200 Million Cryptocurrency Trading Scam

BlockBeats News, April 23rd, the U.S. Securities and Exchange Commission (SEC) and federal prosecutors have charged a man with orchestrating a cryptocurrency scam that defrauded approximately 90,000 people, with losses totaling up to $200 million, promising high returns from Bitcoin and forex trading.

On April 22nd, the SEC announced that it had charged a dual U.S.-Filipino citizen, Ramil Palafox, alleging that he illegally diverted over $57 million of investor funds through his company PGI Global from January 2020 to October 2021. The regulatory agency claimed that Palafox operated through a multi-level marketing (MLM) scheme, implementing a "Ponzi-like" fraud that collapsed in 2021. The SEC stated that he attracted investors through "false expertise in the crypto industry and a so-called AI auto-trading platform."

Scott Thompson, Deputy Regional Director of the SEC's Philadelphia Office, stated: "Palafox lured investors with promises of guaranteed profits from intricate cryptocurrency and forex trades, but in reality, he never made any trades and instead used millions to buy cars, watches, and real estate for himself and his family." The SEC has charged Palafox with violating anti-fraud and registration provisions of federal securities laws, seeking a permanent injunction to prohibit him from further selling securities and cryptocurrencies, as well as demanding disgorgement of ill-gotten gains and civil penalties.