Crypto Chaos: $200M Ponzi Hits Thousands of Victims

Federal authorities have unmasked what they call one of the most brazen crypto frauds in recent history—charging Ramil Palafox, a dual citizen of the U.S. and the Philippines, with orchestrating a $200 million scam through a firm called PGI Global.

From 2020 to late 2021, Palafox is accused of misleading more than 90,000 people by promising daily returns from Bitcoin and forex trading allegedly powered by artificial intelligence. But according to the SEC and DOJ, there was no sophisticated trading—just a slick facade hiding a classic Ponzi-style scheme.

AI Buzzwords, Vegas Events, and Luxury Cars

So how did Palafox convince thousands to invest?

Authorities say he threw flashy recruitment events in places like Las Vegas and Dubai to build trust and hype. He sold the dream of financial freedom through a multilevel marketing system, rewarding early investors for bringing in new ones.

Behind the scenes, the money wasn’t being invested in trading at all. Prosecutors allege that it was used to fund a luxurious lifestyle—think high-end sports cars, designer clothes, and real estate. A recent seizure by U.S. officials included:

• 17 luxury vehicles

• Over $1 million in cash

• Designer fashion, watches, and jewelry

The scam also crossed borders. A related entity, The Praetorian Group International Trading Inc., was shut down in the UK after the U.S. seized its website in 2021.

Charges Filed: SEC and DOJ Crack Down

The legal response has been swift and multifaceted.

The SEC is seeking to bar Palafox from ever selling securities again, along with demanding the return of illicit profits and civil penalties. Meanwhile, the Department of Justice is pursuing criminal charges, including:

• Wire fraud

• Money laundering

• Illegal monetary transactions

“This wasn’t trading—it was theft dressed up in crypto jargon,” said Scott Thompson of the SEC’s Philadelphia office.

The case is especially notable as one of the first major crypto enforcement actions under the SEC’s newly enhanced crypto unit.

Key Takeaways:

• $200M allegedly defrauded from 90,000+ investors

• Lavish lifestyle funded with investor money

• Promises of 0.5%–3% daily returns fueled the scam

• Civil and criminal proceedings are ongoing

Bottom Line:

This case is a harsh reminder that not all that glitters in crypto is gold. As regulators tighten their grip on the digital asset space, investors should remain skeptical of high-return promises—especially when wrapped in buzzwords and luxury.