In a major crackdown, the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have charged Ramil Palafox, a dual U.S.-Philippines citizen, with orchestrating a $200 million Ponzi-like crypto trading scam that misled over 90,000 investors worldwide.
According to the SEC’s official complaint, Palafox defrauded investors through his firm, PGI Global, between January 2020 and October 2021, falsely promising consistent returns through Bitcoin and forex trading driven by so-called “AI-powered auto-trading technology.”
Instead of investing the funds, Palafox allegedly used $57 million for personal luxuries, including homes, luxury cars, designer items, and extravagant recruitment events held in Dubai and Las Vegas.
Multilevel Marketing Meets Ponzi Fraud
Palafox’s operation utilized a multilevel marketing structure, offering referral bonuses and guaranteed daily returns ranging from 0.5% to 3%. According to the SEC, investor funds were used to pay off earlier participants in classic Ponzi fashion, creating the illusion of legitimate profits.
“Palafox attracted investors with the allure of guaranteed profits from sophisticated crypto and forex trading,” said Scott Thompson, Associate Director of the SEC’s Philadelphia office. “But instead of trading, Palafox bought himself and his family cars, watches, and homes.”
The SEC now seeks a permanent injunction, a ban on future securities offerings by Palafox, repayment of ill-gotten gains, and civil penalties for violations of U.S. securities laws.
Criminal Charges Filed by DOJ
In a parallel case, the U.S. Attorney’s Office for the Eastern District of Virginia indicted Palafox on charges of wire fraud, money laundering, and unlawful monetary transactions.
The indictment, unsealed on April 22, reveals that Palafox deliberately misled investors about PGI Global’s profitability, licensing, and trading activities. Prosecutors say most investor funds were never used for trading, and many participants lost their money entirely.
If convicted, Palafox faces forfeiture of significant assets, including:
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Over $1 million in cash
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17 luxury vehicles (including 2 Teslas, 2 Lamborghinis, a Ferrari 458 Speciale, and 2 Porsches)
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Designer bags, shoes, jewelry, and watches
Global Reach and Regulatory Fallout
The scheme operated under several entities, including Praetorian Group International Trading Inc. The DOJ seized the firm’s website in 2021, triggering the UK High Court to shut down PGI’s operations in the United Kingdom.
This case marks the first major crypto enforcement action under new SEC Chair Paul Atkins, who was sworn in on April 22, 2025. Notably, it follows a separate case in which the SEC charged Nova Labs in January for unregistered securities sales involving Helium token mining devices. That case was settled in April with a $200,000 civil penalty.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
