The U.S. Securities and Exchange Commission charged PGI Global founder Ramil Palafox with orchestrating a fraudulent scheme that allegedly raised around $198 million from global investors and misappropriated more than $57 million of those funds.
The SEC’s complaint, filed in the U.S. District Court for the Eastern District of Virginia, accuses Palafox of violating anti-fraud and registration provisions of federal securities laws.
According to the SEC, PGI Global claimed to be a crypto asset and foreign exchange trading platform promising high returns while offering multi-level-marketing-style referral incentives to attract new investors. From January 2020 to October 2021, the agency alleges Palafox misappropriated over $57 million to buy Lamborghinis and other personal luxury items, using the remainder of the funds to pay earlier investors in a “Ponzi-like” scheme until it collapsed.
“As alleged in our complaint, Palafox attracted investors with the allure of guaranteed profits from sophisticated crypto asset and foreign exchange trading, but instead of trading, Palafox bought himself and his family cars, watches and homes using millions of dollars of investor funds,” Scott Thompson, Associate Director of the SEC’s Philadelphia Regional Office, said in a statement on Tuesday. “We will continue to investigate and take action against bad actors who take advantage of investors with promises of guaranteed passive income and other lies and deceit.”
“Palafox used the guise of innovation to lure investors into lining his pockets with millions of dollars while leaving many victims empty-handed,” Laura D’Allaird added. “In reality, his false claims of crypto industry expertise and a supposed AI-powered auto-trading platform were just masking an international securities fraud.”
D’Allaird leads the SEC’s new Cyber and Emerging Technologies Unit. Launched in February, the unit is focused on protecting investors against fraud in crypto and AI. CETU replaces the Crypto Assets and Cyber Unit, which was created in 2022 under the former Biden administration.
The SEC is seeking permanent injunctions in the case, including bans on Palafox’s involvement in the marketing of securities or crypto assets, alongside disgorgement of the alleged ill-gotten gains, prejudgment interest and civil penalties. The complaint also names BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox and Linda Ventura as relief defendants, seeking disgorgement of funds they allegedly received.
In a parallel action, Palafox was arraigned on criminal charges in U.S. District Court by the U.S. Attorney’s Office for the Eastern District of Virginia. The SEC’s ongoing investigation is being carried out with the assistance of the FBI and the IRS.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
