SEC Charges Individual with $198 Million Crypto and Forex Fraud Scheme

The U.S. Securities and Exchange Commission (SEC) has filed charges against Ramil Palafox, accusing him of running a fraudulent crypto and forex investment scheme that raised approximately $198 million from global investors. According to the SEC, Palafox misappropriated more than $57 million for personal luxury purchases, including Lamborghinis and items from luxury retailers.

Palafox operated an entity, PGI Global, which he presented as a crypto asset and forex trading company. Between January 2020 and October 2021, he allegedly lured investors by selling “membership” packages that guaranteed high returns from PGI Global’s supposed trading activities. Palafox also encouraged participants to recruit new investors through multi-level-marketing-like referral incentives.

However, the SEC's complaint alleges that Palafox diverted investor funds for personal use while using remaining funds to pay other investors, operating a Ponzi-like scheme until the company collapsed in late 2021.

Scott Thompson, Associate Director of the SEC’s Philadelphia Regional Office, stated that Palafox misled investors with the false promise of guaranteed profits while failing to conduct any actual trades. Laura D’Allaird, Chief of the Commission’s Cyber and Emerging Technologies Unit, emphasized that Palafox’s false claims of crypto industry expertise and AI-powered auto-trading were merely a facade for international securities fraud.

The SEC has filed its complaint in the U.S. District Court for the Eastern District of Virginia, seeking permanent injunctive relief, conduct-based injunctions barring Palafox from participating in multi-level-marketing investment programs, and disgorgement of ill-gotten gains with prejudgment interest, along with civil penalties.