SEC charges CEO with nearly $200m crypto fraud scheme

The Securities and Exchange Commission accused the CEO of PGI Global of orchestrating an international program which raised 198 million dollars in the context of false crypto exchange complaints.

THE Commission of securities The Ramil Palafox, CEO of PGI Global, accused of having orchestrated an international fraud program of $ 198 million linked to the trading of crypto and forex trading, alleging that he abused more than $ 57 million in investor funds for luxury cars, designer products and personal expenses.

According to the dry, PGI Global claimed Be a trading company for assets and change. From January 2020 to October 2021, Palafox sold “membership” packages which, according to him, would bring high yields to investors. These plans were linked to “supposedly active in cryptography and the exchange of PGI global PGI and offered members of reference incentives at several level level levels to encourage them to recruit new investors,” said the dry.

The financial guard dog says that Palafox attracted investors with the “attraction of the guaranteed profits” of the crypto and the exchange trade, but instead of negotiating, Palafox has bought itself as well as its family cars, its watches and its houses using millions of dollars in investor funds.

“Palafox used the innovation cover to attract investors to line their pockets with millions of dollars while leaving many victims empty -handed. In reality, its false allegations of expertise in the cryptographic industry and a supposed automatic negotiating platform fueled by AI only masked international fraud in terms of securities. “

Laura d’Assiagard, head of the new unit of cyber and emerging technologies of the commission

The SEC filed its complaint before the American district court in the Oriental District of Virginia. He is looking for permanent injunctions, penalties and the return of poorly acquired earnings. Palafox also faces criminal charges in a distinct case from the American prosecutor’s office for the Virginia Oriental District.