The SEC and federal prosecutors have charged a man with involvement in a $200 million Crypto Assets trading eyewash.

On April 23, the U.S. Securities and Exchange Commission (SEC) and federal prosecutors charged a man with launching a crypto assets eyeflash that defrauded approximately 90,000 people, involving as much as $200 million, promising high returns from Bitcoin and forex trading. The SEC announced on April 22 that it had charged Ramil Palafox, a dual citizen of the U.S. and the Philippines, claiming he illegally misappropriated over $57 million in investor funds through his company PGI Global from January 2020 to October 2021. The regulator alleges that Palafox operated using a multi-level marketing (MLM) model, implementing a “Ponzi-like” scheme until the company collapsed in 2021. The SEC stated that he attracted investors through “false expertise in the crypto industry and a so-called AI automated trading platform.” Scott Thompson, deputy director of the SEC’s Philadelphia office, stated: “Palafox attracted investors with promises of ‘guaranteed’ profits from complex crypto assets and forex trading, but in reality, he never engaged in trading at all; instead, he used millions of dollars to buy cars, watches, and real estate for himself and his family.” The SEC charges Palafox with violating anti-fraud and registration provisions of federal securities law, seeking a permanent injunction against him to prohibit him from selling securities and crypto assets in the future, while also demanding the return of illegal gains and imposing civil penalties.