The U.S. Securities and Exchange Commission (SEC) has charged Ramil Palafox, CEO of PGI Global, for allegedly orchestrating a $198 million Ponzi scheme involving false promises of AI-powered crypto trading and guaranteed returns.
Filed in the U.S. District Court for the Eastern District of Virginia, the SEC’s complaint accuses Palafox of selling so-called “membership packages” to investors, touting high-yield profits generated by advanced algorithmic trading systems. In reality, regulators say over $57 million in investor funds—denominated in both fiat and Bitcoin—was diverted for Palafox’s personal enrichment and to benefit close associates.
The case marks the SEC’s first crypto enforcement action under newly sworn-in Chair Paul Atkins, signaling a potential recalibration of the agency’s strategy under the Trump administration—shifting from sweeping enforcement to high-impact fraud prosecutions.
SEC: PGI Global Used AI Crypto Claims to Mask Fraud
According to the SEC, PGI Global—also known as Praetorian Group International—pitched unregistered securities cloaked in flashy crypto buzzwords and fake AI innovations. Between January 2020 and October 2021, Palafox allegedly solicited investors with promises of 200% returns via a proprietary “AI trading platform” operating in crypto and forex markets.
But regulators say the firm conducted little to no actual trading, and that the AI platform never existed.
PGI Global’s U.K. division was ordered to shut down by the U.K. High Court in September 2022 after authorities deemed it fraudulent. During just an eight-month stretch, the company raised over £612,000 ($815,000) from British investors, many of whom reported blocked withdrawal requests and vanished earnings.
Despite being based in the U.S., Palafox allegedly refused to cooperate with SEC investigators. Federal authorities—including the Department of Justice and Department of the Treasury—eventually seized PGI Global’s website as part of the widening probe.
“PGI Global never had an ‘Auto Trading’ platform and was conducting little to no trading of any kind on investors’ behalf,” the court filing states.
SEC Targets Palafox’s Inner Circle as Ponzi Fallout Widens
The SEC also alleges that Palafox transferred substantial funds and assets to family members in anticipation of legal action. These included a $320,000 mortgage payoff, a Range Rover, and high-end purchases from Louis Vuitton and Hermès—all flagged as potential attempts to shield assets from seizure.
The complaint seeks full disgorgement of misappropriated investor funds and a permanent injunction banning Palafox from participating in future crypto- or MLM-linked securities offerings. Civil penalties are also under consideration.
Meanwhile, federal prosecutors in Virginia have filed a parallel criminal indictment, signaling that criminal charges may soon follow in one of the largest crypto-related fraud cases to date.
Quick Facts
- The SEC has charged Ramil Palafox, founder of PGI Global, with orchestrating a $198 million crypto and forex fraud.
- The firm sold unregistered “membership packages” promising high returns using a fictitious AI trading platform.
- Over $57 million in investor funds was allegedly misused for personal gain.
- A parallel criminal case has been filed by federal prosecutors in Virginia.
