Uncovered: Alleged 198 Million Dollar Cryptocurrency Fraud Exposed
Ponzi Scheme Allegations: Ramil Palafox Accused of Running $198 Million Scam
The U.S. Securities and Exchange Commission (SEC) has accused Ramil Palafox, the founder of cryptocurrency firm PGI Global, of running a staggering $198 million Ponzi scheme. This deceitful scheme fooled investors worldwide with false promises of lucrative profits.
Between 2020 and the end of 2021, Palafox marketed PGI Global as a legitimate cryptocurrency and foreign exchange trading platform, luring investors with enticing high return guarantees via membership packages. The multi-level marketing schema brought in new investors, as existing ones recruited others into the system.
Unfortunately, a substantial chunk of the raised funds was not invested as promised. According to the SEC report, Palafox splurged at least $57 million on extravagant luxuries such as luxury vehicles, watches, and properties. The remaining funds were used to pay early investors in the classic Ponzi scheme fashion, with the system collapsing at the end of 2021.
False Promises, Hidden Fraud
Scott Thompson from the SEC's Philadelphia Regional Office stated, "Ramil Palafox offered investors guaranteed returns, but spent millions on himself and his family."
Laura D'Allaird, head of the Cyber Fraud and New Technologies Unit, also noted that crypto technologies were disguised to conceal this massive fraud.
The complaint filed with the U.S. District Court for the Eastern District of Virginia highlights Palafox's infringement of federal securities and registration laws. The SEC is determined to bar Palafox from multi-level marketing activities, recoup any ill-gotten profits, and impose civil penalties.
Follow-up Actions and Global Concerns
In addition to Palafox, BBMR Threshold LLC and other related entities are also being ordered to return their ill-gotten gains. The U.S. Attorney's Office is also pursuing criminal charges against Palafox.
The UK High Court sanctioned the shutdown of PGI Global's UK branch in 2022, ruling the system illegal. It was discovered that the company transferred £500,000 of investors' money to personal accounts of executives, with £11,500 spent on luxury expenses. Palafox resisted cooperation with UK authorities during questioning.
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[1] SEC Press Release: SEC Charges PGI Global Founder with Operating $198 Million Cryptocurrency Ponzi Scheme, April 22, 2025.
[2] SEC Complaint against Ramil Palafox, et al. in the U.S. District Court for the Eastern District of Virginia, April 22, 2025.
[3] U.S. Attorney's Office Press Release: Florida Man Indicted in $198 Million Cryptocurrency Ponzi Scheme, April 25, 2025.
[4] SEC Litigation Release: Litigation Release No. 25047, April 22, 2025.
[5] CoinDesk Article: SEC Charges Ponzi Scheme Suspect Ramil Palafox in $198 Million Cryptocurrency Scam, April 22, 2025.
- The SEC noted that Ramil Palafox, founder of PGI Global, hid his cryptocurrency Ponzi scheme behind the guise of a legitimate trading platform, promising lucrative returns to investors.
- Investors worldwide were fooled by Palafox's false promises, as the SEC alleges that a significant portion of the raised funds was not invested, but spent on extravagant luxuries.
- In the general-news and crime-and-justice sections, it was reported that Palafox, along with BBMR Threshold LLC and other related entities, are being ordered to return their ill-gotten gains, and Palafox is facing criminal charges.
- The SEC and US Attorney's Office are determined to bar Palafox from multi-level marketing activities, recoup any ill-gotten profits, and impose civil penalties.
- The UK High Court ruled the PGI Global system illegal in 2022 and discovered funds were transferred to personal accounts of executives, raising concerns globally about cryptocurrency investments and Ponzi schemes.
