SEC Charges PGI Global Founder with Fraudulent Scheme Guaranteeing Returns from "Supposed Crypto Asset"

SEC Charges PGI Global Founder with $198 Million Crypto Asset and Foreign Exchange Fraud Scheme

The Securities and Exchange Commission today charged Ramil Palafox for orchestrating a fraudulent scheme that raised approximately $198 million from investors worldwide and for misappropriating more than $57 million of investor funds.

According to the SEC’s complaint, Palafox’s company, known as PGI Global, claimed to be a crypto asset and foreign exchange trading company. From January 2020 through October 2021, Palafox offered and sold PGI Global “membership” packages, which he claimed guaranteed investors high returns from PGI Global’s supposed crypto asset and foreign exchange trading and offered members multi-level-marketing-like referral incentives to encourage them to recruit new investors. However, as the complaint alleges, Palafox misappropriated more than $57 million in investor funds to buy Lamborghinis, items from luxury retailers, and for other personal expenses. He also used the majority of the remaining investor funds to pay other investors their purported returns and referral rewards in a Ponzi-like scheme until its collapse in late 2021.

Paul S. Atkins Sworn In as SEC Chairman

Paul S. Atkins was sworn into office today as the 34th Chairman of the Securities and Exchange Commission.

Chairman Atkins was nominated by President Donald J. Trump on January 20, 2025, and confirmed by the U.S. Senate on April 9, 2025.

“I am honored by the trust and confidence President Trump and the Senate have placed in me to lead the SEC,” said Chairman Atkins. “As I return to the SEC, I am pleased to join with my fellow Commissioners and the agency’s dedicated professionals to advance its mission to facilitate capital formation; maintain fair, orderly, and efficient markets; and protect investors. Together we will work to ensure that the U.S. is the best and most secure place in the world to invest and do business.”

Unicoin CEO Rejects SEC’s Attempt to Settle Enforcement Probe

Unicoin has rebuffed the U.S. Securities and Exchange Commission’s (SEC) attempt to negotiate a settlement agreement to close an ongoing probe into the Miami-based crypto company, its CEO Alex Konanykhin revealed in a Tuesday letter to investors.

In his letter, Konanykhin said Unicoin was given an “ultimatum” by the SEC to attend a settlement negotiation meeting last week, on April 18.

“We declined to show up,” Konanykhin told CoinDesk, adding that the SEC had made demands ahead of the meeting that he found “unacceptable.” He declined to share specifics, telling CoinDesk that the communication between Unicoin’s lawyers and the SEC was confidential.

‘A Complete Victory for Richard Heart’: SEC Walks Away From Case Against HEX Founder

In a rare legal defeat for the U.S. Securities and Exchange Commission, the agency has formally dropped its fraud case against Richard Schueler, better known as Richard Heart, founder of the crypto projects HEX, PulseChain, and PulseX.

On April 21, the SEC informed the Eastern District Court of New York it would not amend its complaint, effectively bringing the case to a close.

“That brings the case to an end with a complete victory for Mr. Heart,” said David Kirk, partner at Kirk & Ingram LLP, who represented the HEX founder in an email to CoinDesk. “To my knowledge, this is the only SEC enforcement action against a participant in the cryptocurrency industry that was dismissed in its entirety by a federal judge.”

SEC Enforcement 2.0: Chairman Atkins Has Arrived

Another of the more controversial enforcement areas for the SEC—off-channel communications—is likely at an end. As perhaps a final act in this area, the SEC recently denied a motion by a number of firms that sought modifications to their settlement agreements with the SEC to bring those settlements in line with settlements the SEC reached in January 2025 that were more favorable to the firms. In denying the motion, the SEC found that those firms’ “settlor’s remorse” did not justify upsetting a final, agreed-upon settlement; Commissioner Peirce issued a dissent.

SEC Awards $6 Million to Joint Whistleblowers

The Securities and Exchange Commission today announced an award of approximately $6 million to joint whistleblowers who provided new information that led to the opening of an examination and provided a roadmap for an enforcement action that resulted in the covered action.

“Today’s award illustrates that the agency can leverage whistleblower information in various ways, including by prompting an examination,” said Jonathan Carr, Acting Chief of the SEC’s Office of the Whistleblower. “If that examination ultimately results in an enforcement action, the whistleblower may be eligible for an award.”