In a major move by the newly chaired U.S. Securities and Exchange Commission (SEC), Ramil Palafox, founder of PGI Global, has been accused of orchestrating a $198 million fraudulent investment scheme. The SEC’s complaint details a web of deceit masked under promises of crypto trading profits, while investor funds were lavishly misused.
Crypto Mirage: PGI Global’s Deceptive Rise
Founded in early 2020, PGI Global posed as a crypto and forex trading platform, luring investors with the promise of high returns and referral bonuses. In reality, the company operated as a Ponzi-style scam, using funds from new investors to pay earlier participants and feigning legitimacy through fake returns.
According to the SEC, Palafox ran the scheme until October 2021, raking in nearly $200 million from global investors.
Luxury Over Loyalty: How Investor Money Was Spent
Rather than being invested in crypto markets, the SEC alleges Palafox misappropriated $57 million for personal luxuries. His expenditures included Lamborghinis, designer goods, real estate, and extravagant personal items, leaving many investors defrauded and financially devastated.
“Palafox attracted investors with the allure of guaranteed profits… but instead of trading, he bought himself and his family cars, watches, and homes,” said Scott Thompson, Associate Director of the SEC’s Philadelphia office.
Legal Showdown: SEC Demands Injunctions and Repayments
The SEC has filed charges in the District Court for the Eastern District of Virginia, accusing Palafox of violating federal securities laws. The Commission is seeking permanent injunctions to bar him from participating in multi-level marketing and trading securities or crypto assets.
In addition, the SEC demands recovery of ill-gotten gains, prejudgment interest, and civil penalties. Relief defendant claims have also been filed against BBMR Threshold LLC and its executives—Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura—alleging they benefited from the fraud.
A Stark Warning for Crypto Investors
Laura D’Allaird, Chief of the SEC’s new Cyber and Emerging Technologies Unit, underscored the wider impact:
“Palafox used the guise of innovation to lure investors into lining his pockets… His false claims of AI-powered crypto trading masked international securities fraud.”
With investigations led by Mike Cuff, Polly Hayes, and Assunta Vivolo, and litigation supported by the FBI, IRS, and U.S. Attorney’s Office, this case marks a pivotal moment for crypto regulation.
As regulators tighten scrutiny, the Palafox case is a sobering reminder of the risks facing crypto investors amid rising fraud masked as digital innovation.
