In its first major move under the leadership of new Chairman Paul Atkins, the U.S. Securities and Exchange Commission (SEC) has launched an explosive case—going after one of the biggest crypto scams in recent memory.
Ramil Palafox, CEO of PGI Global, has been charged with orchestrating a massive $198 million Ponzi scheme, luring investors with false promises of up to 200% returns through a so-called AI-powered trading platform. According to the SEC, there was no AI—just manipulation and deception.
💰 No AI Trading—But Plenty of Luxury
The SEC alleges that Palafox personally misappropriated over $57 million of investor funds, splurging on a $1.7 million mansion in Las Vegas, multiple Lamborghinis, and over $1.18 million in Cartier jewelry. The scheme worked like a classic Ponzi setup: new investors unknowingly paid off the older ones.
📉 Fake Platforms and Faked Data
According to court filings, Palafox built fake dashboards that displayed false profits to trick investors. PGI Global—short for Praetorian Group International—was simply a front for illegally selling unregistered securities, dressed up with crypto buzzwords.
In fact, the company had already been shut down by a UK court in 2022 for running a fraudulent investment operation. From 2020 to 2021, PGI collected over $800,000 from investors, many of whom couldn’t withdraw their funds once the promised returns failed to materialize.
👩⚖️ Family Members in the Crosshairs
The lawsuit doesn’t stop at Palafox. The SEC also named his wife, mother, and brother-in-law, who allegedly benefited from investor funds—covering a $320,000 mortgage payment, a Range Rover, and luxury items from Louis Vuitton and Hermès.
The SEC is now seeking full disgorgement, permanent bans from securities offerings related to crypto and MLMs, and hefty civil penalties. Meanwhile, federal prosecutors in Virginia have launched a parallel criminal case.
🧠 “Crypto Expert” Without Credentials
“His fake claims of crypto expertise and an AI-powered trading platform were just a cover for an international securities fraud,” said Laura D’Allaird, head of the SEC’s Cyber Unit.
#CryptoFraud , #SEC , #CryptoScamAlert , #CryptoRegulation , #CryptoSecurity
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