Ramil Palafox

title: Ramil Palafox, US-Philippines Citizen, Charged With Running a Cryptocurrency Fraud Scheme That Swindled $200M

Federal prosecutors and regulators have charged a man accused of operating a massive cryptocurrency fraud scheme that reportedly swindled $200 million from 90,000 investors.

Ramil Palafox, a dual US and Philippines citizen, is alleged to have stolen over $57 million from January 2020 through October 2021.

The Securities and Exchange Commission alleges Palafox (pictured above) induced investors with false representations that he had cryptocurrency knowledge and an AI-driven trading platform.

According to the SEC complaint, Palafox’s scheme, PGI Global, enticed new investors with the promise of 0.5% to 3% daily returns on Bitcoin (BTC) trading.

However, the majority of investor funds were not used to purchase or sell Bitcoin as guaranteed but were diverted to settle previous investors and finance Palafox’s extravagant lifestyle.

The complaint indicates that if convicted, Palafox would forfeit more than $1 million in cash and a stunning fleet of 17 vehicles.

His fleet includes two Teslas, a Ferrari 458 Special, two Lamborghinis, and two Porsches.

Regulators disclosed Palafox held lavish recruitment parties in Dubai and Vegas where he paid members a bonus for recruiting new investors.

The investigators further listed several designer handbags, wallets, footwear, jewelry, and watches under assets linked to the suspected fraud.

The case is the first cryptocurrency-related enforcement action since the SEC’s new chairman, Paul Atkins, began his term on April 22.

Atkins has been described as “crypto-friendly” in his regulatory approach.

The SEC is seeking several penalties against Palafox including a permanent injunction from selling securities and crypto assets, restitution of unlawful gains, and civil monetary fines.

The move follows another recent crypto enforcement case against Nova Labs, concluded in April with a settlement and a $200,000 civil penalty following allegations of selling unregistered securities using Helium token mining hardware.

News data source: kdj.com

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