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$198 Million Crypto Ponzi? SEC Unveils AI Trading Scam by Global Kingpin

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A glittering $198 million crypto scam wrapped in the illusion of AI trading has collapsed, revealing a Ponzi empire fueled by luxury cars and designer watches. Who knew “AI trading” could buy such nice things?

PGI Global: The “AI Trading” Scheme That Was Really Just Smoke and Mirrors

On April 22, the U.S. Securities and Exchange Commission (SEC) revealed that Ramil Palafox, the mastermind behind PGI Global, had managed to swindle a staggering $198 million from investors across the globe. According to the SEC, PGI Global purported to be a crypto and foreign exchange trading company—well, at least that was the cover story.

But here’s the kicker: instead of trading crypto like he promised, Palafox funneled more than $57 million of the funds into personal indulgences, buying luxury cars and pricey goods for himself. The rest of the capital was dished out as fake returns and “referral rewards,” which, if we’re honest, were just bribes to keep the scheme rolling—until it eventually collapsed in 2021. Scott Thompson, Associate Director at the SEC’s Philadelphia office, wasn’t shy about calling it like it was:

“Palafox attracted investors with the promise of guaranteed profits from crypto and forex trading, but instead of trading, he bought himself and his family cars, watches, and homes using millions of dollars of investor funds.” Yeah, real nice. 👏

Between January 2020 and October 2021, PGI Global pulled a classic move: selling “membership” packages and offering referral bonuses. The SEC described it as a multi-level-marketing (MLM) trap aimed at recruiting new victims to keep the money flowing under the illusion of returns that were as real as a unicorn in a data center.

The SEC also didn’t mince words about the tech mumbo jumbo Palafox used to cover his tracks. In reality, his so-called “AI-powered trading platform” was nothing more than a carefully constructed smoke screen to hide a massive international securities fraud.

“In truth, his claims of expertise in the crypto industry and an AI-powered auto-trading platform were nothing more than a façade to mask securities fraud on a global scale.” And there goes the shiny digital asset dream. 💻💸

As a result of his global hustle, the SEC is seeking heavy penalties, including “permanent injunctive relief” (fancy talk for “you can’t scam anyone again”), conduct-based injunctions to prevent Palafox from joining any future MLM schemes involving securities or crypto, and a hefty disgorgement of all his ill-gotten gains, plus interest. Let’s not forget the looming criminal charges filed by the U.S. Attorney’s Office for the Eastern District of Virginia. Oh, and the SEC investigation is still ongoing. Stay tuned for more drama. 🎬

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2025-04-26 06:57

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