SEC Charges PGI Global Founder in $198 Million Crypto Fraud

The Securities and Exchange Commission (SEC) has filed a lawsuit against PGI Global’s founder, Palafox, alleging a $198 million cryptocurrency fraud. The complaint accuses Palafox of siphoning investor funds for personal use, including luxury purchases like Lamborghinis, watches, and homes. According to the SEC, PGI Global marketed itself as a crypto and forex trading platform, promising high returns and multi-level marketing incentives. However, instead of utilizing investor funds for actual trading, the alleged fraudster used them to pay earlier investors before the platform’s collapse.