SEC Charges PGI Global Founder for $198M Crypto Ponzi Scheme
ByAinvest
Wednesday, Apr 23, 2025 11:33 am ET1min read
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According to the SEC's complaint, PGI Global claimed to be a crypto asset and foreign exchange trading company, offering membership packages that guaranteed high returns. However, the SEC alleges that Palafox used new investor funds to pay promised returns to earlier investors in a Ponzi-like scheme. When the inflow of new money slowed down, the scheme collapsed in late 2021 [2].
The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against Palafox. The complaint also names BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura as relief defendants and seeks disgorgement of their ill-gotten gains and prejudgment interest. In a parallel action, Palafox was arraigned on criminal charges brought by the U.S. Attorney's Office for the Eastern District of Virginia [2].
This case highlights the persistent threat of crypto fraud and the ongoing efforts by authorities to protect investors. It underscores the importance of due diligence and skepticism when faced with promises of unrealistic returns. Investors are advised to exercise caution and to check if the platform or investment is registered with relevant financial authorities [1].
References:
[1] https://bitcoinworld.co.in/crypto-fraud-sec-charges/
[2] https://www.newsfilecorp.com/release/249426/SEC-Charges-PGI-Global-Founder-with-198-Million-Crypto-Asset-and-Foreign-Exchange-Fraud-Scheme
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The SEC has charged PGI Global founder Ramil Palafox with running a crypto Ponzi scheme that defrauded at least 90,000 investors of $198 million. Palafox allegedly used investor funds to purchase luxury items, including houses, cars, and jewelry, and to fund events in Dubai and Las Vegas. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains, and civil penalties.
The U.S. Securities and Exchange Commission (SEC) has filed charges against Ramil Palafox, the founder of PGI Global, for orchestrating a massive crypto Ponzi scheme that defrauded at least 90,000 investors out of approximately $198 million. The charges, announced on April 22, 2025, allege that Palafox misappropriated more than $57 million of investor funds for personal expenses, including luxury items and events in Dubai and Las Vegas [1].According to the SEC's complaint, PGI Global claimed to be a crypto asset and foreign exchange trading company, offering membership packages that guaranteed high returns. However, the SEC alleges that Palafox used new investor funds to pay promised returns to earlier investors in a Ponzi-like scheme. When the inflow of new money slowed down, the scheme collapsed in late 2021 [2].
The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against Palafox. The complaint also names BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura as relief defendants and seeks disgorgement of their ill-gotten gains and prejudgment interest. In a parallel action, Palafox was arraigned on criminal charges brought by the U.S. Attorney's Office for the Eastern District of Virginia [2].
This case highlights the persistent threat of crypto fraud and the ongoing efforts by authorities to protect investors. It underscores the importance of due diligence and skepticism when faced with promises of unrealistic returns. Investors are advised to exercise caution and to check if the platform or investment is registered with relevant financial authorities [1].
References:
[1] https://bitcoinworld.co.in/crypto-fraud-sec-charges/
[2] https://www.newsfilecorp.com/release/249426/SEC-Charges-PGI-Global-Founder-with-198-Million-Crypto-Asset-and-Foreign-Exchange-Fraud-Scheme
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