Bitcoin King or a liar artist? SEC fee crypto, fraud by Forex company owners over $200 million
Federal prosecutors and regulators have charged a man they claimed to run a massive cryptocurrency fraud scheme that captured $200 million from 90,000 investors.
According to the allegations filed on April 22, Ramil Palafox, a dual-person and Filipino citizen, allegedly stole more than $57 million through his PGI Global from January 2020 to October 2021.
How the program works
The SEC said Palafox recruits investors by falsely saying he has cryptocurrency knowledge and an AI-powered trading platform.
Spend on personal belongings
“Palafox affirms profits through refined transactions of crypto assets and forex, but no deals, not deals, and Palafox bought itself and his family cars, watches and homes for millions of dollars investors,” said Scott Thompson, deputy director of the office of SCOTT PHILADELPHIA.
Court documents show that if convicted, Palafox will lose more than $1 million in cash and a stunning fleet of 17 cars. His fleet consists of two Teslas, a Ferrari 458 special offer, two Lamborghini and two Porsches.
A screenshot of the SEC complaint vs. Ramil Palafox. Source: SEC
Regulators revealed that Palafox held luxury recruiters in Dubai and Las Vegas, where he paid members a bonus for hiring new investors.
Investigators further listed several designer handbags, wallets, footwear, jewelry, and watches under assets related to suspicious fraud.
The funds of new investors are not invested in transactions on a guaranteed basis, but are transferred to the luxury lifestyle of previous investors and Palafox.
BTCUSD trading in the $93,417 region on the 24-hour chart: TradingView.com
False promises of high returns
Federal authorities charged Palafox with alleged wire fraud, money laundering and illegal currency transactions in a March 13 indictment filed. They claim he deceived investors by ensuring that the daily return on Bitcoin transactions ranged from 0.5% to 3%.
Palafox is said to tell investors that his traders can make money regardless of whether the price of Bitcoin rises or falls. According to a Justice Department investigation, most investors’ funds are never used to buy or sell Bitcoin, and many lose some or all of their investments.
The first major case under the leadership of the new SEC
The case is a cryptocurrency-related law enforcement action since SEC new chairman Paul Atkins began his tenure on April 22.
Atkins’ regulatory style is considered “crypto-friendly.” The SEC requires multiple fines to be imposed on Palafox, including a permanent injunction to the sale of securities and crypto assets, compensation for unjust gains and civil fines.
The move comes after another recent crypto enforcement case against Nova Labs, which was under settlement agreement and a $200,000 civil penalties in April, after alleging the sale of unregistered securities using helium token mining hardware.
Featured images from Outseer, charts for TradingView
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