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Crypto News: SEC Exposes Fake Crypto Trading Platform That Cost Investors $198 Million
The Securities and Exchange Commission (SEC) has made another significant move to protect investors from fraudulent activities in the crypto sector. The agency has charged Ramil Palafox, the mastermind behind PGI Global, for operating a massive $198 million scam.
As alleged by the SEC, Palafox promised investors huge returns through “membership packages” and multi-level marketing-like referral incentives to encourage new investors to join the platform. However, he misused over $57 million in investor funds to fund his lavish lifestyle, including buying Lamborghinis, luxury items, and real estate.
Furthermore, he used up the remaining investor money to pay other investors their returns and referral bonuses, mimicking a classic Ponzi scheme, until it collapsed in 2021. The SEC has charged Palafox with violating anti-fraud and securities laws and is seeking permanent bans, the return of ill-gotten gains, and civil penalties.
Palafox also faces criminal charges filed by the U.S. Attorney’s Office for the Eastern District of Virginia.
Source: https://coinpedia.org/news/crypto-news-sec-exposes-fake-crypto-trading-platform-that-cost-investors-198-million/
