The U.S. SEC accuses PGI Global founder of $198 million cryptocurrency and forex fraud

ChainCatcher News, the U.S. SEC has charged PGI Global founder Ramil Palafox with orchestrating a fraud that raised approximately $198 million from global investors and misappropriated over $57 million in funds.

The SEC stated that PGI Global claimed to be a cryptocurrency and forex trading company. Between early 2020 and October 2021, Palafox sold "membership" packages, promising high returns and establishing a multi-level marketing-like referral reward system to encourage recruitment. Palafox used investor funds to purchase luxury goods and for personal expenses, while the remaining funds were used in a Ponzi scheme to pay returns to early investors until the scheme was exposed at the end of 2021.

The SEC has filed a lawsuit in the Eastern District of Virginia, accusing him of violating federal securities laws and seeking injunctions, the recovery of illegal gains, and civil penalties. The lawsuit also names BBMR Threshold LLC and several individuals as relief defendants.