According to BlockBeats, on April 23rd, the US Securities and Exchange Commission (SEC) and federal prosecutors accused a man of allegedly launching a cryptocurrency scam that deceived about 90000 people and involved a total amount of up to $200 million, promising high returns from Bitcoin and forex trading.
The SEC announced on April 22 that it has filed charges against Ramil Palafox, a dual citizen of the United States and the Philippines, alleging that he illegally misappropriated over $57 million in investor funds through his company PGI Global from January 2020 to October 2021. Regulatory authorities alleged that Palafox operated using a multi-level marketing (MLM) model and carried out a "Ponzi scheme" until the company went bankrupt in 2021. The SEC claimed that he attracted investors through "false expertise in the cryptocurrency industry and so-called AI automated trading platforms".
Scott Thompson, Deputy Director of the SEC's Philadelphia Office, said, "Palafox attracted investors with the promise of 'guaranteed profits' from complex cryptocurrency and forex trading, but in reality, he did not engage in any trading at all. Instead, he spent millions of dollars buying cars, watches, and real estate for himself and his family The SEC accuses Palafox of violating anti fraud and registration provisions under federal securities laws and is seeking a permanent injunction against it, prohibiting it from selling securities and cryptocurrency assets in the future, while demanding the return of illegal gains and civil fines.
