Less Than 24 Hours In, SEC Chair Paul Atkins Targets $198M Crypto Ponzi Scheme
Just a day after swearing in its new chair, Paul Atkins, the U.S. Securities and Exchange Commission (SEC) has filed its first major crypto enforcement action under the new leadership—targeting what it calls a massive fraud operation cloaked in blockchain buzzwords and artificial intelligence.
The SEC on Tuesday charged Ramil Palafox, CEO of PGI Global, with orchestrating a $198 million Ponzi-like scheme that allegedly misled thousands of investors with promises of high-tech trading systems and guaranteed returns. The complaint, filed in the U.S. District Court for the Eastern District of Virginia, accuses Palafox of using investor funds not for crypto or forex trading, but to bankroll a lavish lifestyle and reward close associates.
“PGI Global never operated an AI-powered trading platform,” the SEC stated in court filings. “Investor capital was instead funneled into a cycle of payouts and personal luxuries.”
A Digital Mirage
Between early 2020 and late 2021, Palafox allegedly sold “membership packages” through PGI Global—formally known as PGI Global UK Ltd—promising returns of up to 200%, supported by a fictitious automated crypto and forex trading engine. The SEC claims the firm conducted little to no actual trading, relying instead on a classic Ponzi structure where returns were paid from incoming funds.
The deception extended to fabricated dashboards and simulated crypto activity, designed to keep investors hooked. Behind the scenes, Palafox reportedly diverted over $57 million worth of both fiat and Bitcoin for personal enrichment and to benefit family members and inner-circle associates.
Among the alleged spoils: a $1.7 million home in Las Vegas, multiple luxury vehicles including Lamborghinis, and over $1 million in Cartier jewelry. The SEC also named Palafox’s wife, mother, and brother-in-law as relief defendants, seeking the return of assets including a Range Rover, designer goods, and mortgage payments.
An International Web Unraveled
Although based in the United States, PGI Global drew scrutiny from abroad as well. In 2022, the U.K. High Court shut down the company after determining it was operating a fraudulent investment scheme. During its peak, the firm raised over £612,000 (approximately $815,000) from U.K. investors alone.
When investor withdrawals became impossible and promised payouts dried up, complaints flooded in—fueling investigations on both sides of the Atlantic. According to authorities, Palafox refused to cooperate with investigators, leading to a court-approved seizure of PGI Global’s website by the Department of Justice and Department of the Treasury.
A Cautionary Signal for Crypto Enforcement
This case marks a significant early move by the SEC under Chair Paul Atkins and underscores the agency’s ongoing focus on crypto-related fraud and unregistered securities offerings. “His false claims of crypto industry expertise and AI-driven innovation masked an international securities fraud,” said Laura D’Allaird, head of the SEC’s Cyber Unit.
In addition to seeking civil penalties and the full return of investor funds, the SEC is asking the court to permanently bar Palafox from participating in any future crypto or multi-level marketing (MLM) securities offerings. Federal prosecutors have also brought parallel criminal charges.
As regulatory bodies intensify their scrutiny of digital assets, the PGI Global case serves as a stark reminder: the line between innovation and deception can be thin—and the consequences, severe.
