Federal prosecutors and regulators billed a man who, according to them, has exploited a massive cryptocurrency fraud system which has defrauded $ 200 million from 90,000 investors.
Ramil Palafox, a double American and Philippin citizen, has stolen more than $ 57 million from January 2020 to October 2021 through his company PGI Global, according to the accusations filed on April 22.
How the program worked
The Securities and Exchange Commission alleys that Palafox has recruited investors by making false representations according to which he had knowledge in cryptocurrency and a commercial platform led by AI.
Spend personal items
“Palafox has attracted investors with the promise of safe profits thanks to a sophisticated exchange of cryptographic assets and currencies, but rather than in trading, Palafox bought itself as well as its family cars, its watches and its homes with millions of dollars in investors,” said Scott Thompson, associate director of Philadelphia de la
Documents indicate that if it was convicted, Palafox would lose more than a million dollars in cash and an amazing fleet of 17 vehicles. Its fleet includes two teslas, a special Ferrari 458, two Lamborghinis and two Porsche.
A screenshot of the SEC complaint vs. Ramil Palafox. Source: SEC
The regulators revealed that Palafox organized sumptuous recruitment parts in Dubai and Las Vegas where he paid members a bonus to recruit new investors.
Investigators have also listed several creators, portfolios, shoes, jewelry and watches under assets related to suspected fraud.
The funds of new investors were not invested in trade as guaranteed, but have been diverted to settle the previous investors and the extravagant lifestyle of finance Palafox.
BTCUSD trading in the $93,417 region on the 24-hour chart: TradingView.com
False promises of high yields
Federal authorities charged Palafox for accusations of wire fraud, money laundering and illegal monetary transactions in an indictment submitted on March 13. They claim that he deceived investors by guaranteeing daily yields between 0.5% and 3% on Bitcoin trade.
Palafox would have informed investors that his traders could earn money, it doesn’t matter if the Bitcoin price was up or down. According to surveys of the Ministry of Justice, the majority of investor funds have never been used to buy or sell bitcoin, and many people have lost part of their investments.
First major case within the framework of the new management of the dry
The case is the first action to apply the law linked to cryptocurrency since the start of the new SEC president, Paul Atkins on April 22.
Atkins has been characterized as “crypto-friendly” in its style of regulation. The dry requires a certain number of penalties against Palafox, in particular a permanent injunction of the sale of securities and cryptographic assets, the restitution of poorly acquired gains and civil fines.
This decision comes after another recent case of application of cryptography against Nova Labs, ended in April on a settlement and $ 200,000 in civil penalty following allegations for the sale of unregistered securities using mining equipment with helium tokens.
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