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In another major blow to the cryptocurrency sector, the U.S. Securities and Exchange Commission (SEC) has formally charged PGI Global with operating a fraudulent Ponzi scheme that defrauded investors out of more than $200 million.
According to the SEC’s complaint, PGI Global and its executives promised high returns to thousands of investors by claiming to use proprietary crypto trading strategies. Instead, the SEC alleges that the company used new investor funds to pay returns to earlier investors, while misappropriating a significant portion for personal use.
“This is a textbook Ponzi scheme dressed in the guise of cryptocurrency,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “PGI Global lured investors with false promises of riches and misused the allure of digital assets to exploit trust and avoid scrutiny.”
Founded in 2017, PGI Global marketed itself as a crypto investment firm with operations spanning multiple countries. It reportedly targeted retail investors through social media platforms and online seminars, promising weekly returns as high as 15%. The company also promoted a multi-level marketing structure, incentivizing users to recruit others into the scheme.
The SEC’s filing includes charges against PGI Global’s founder and several top executives. The agency seeks permanent injunctions, disgorgement of ill-gotten gains, and civil penalties.
Investors are urged to exercise caution and verify the legitimacy of crypto-related investment opportunities, especially those promising unusually high or guaranteed returns.
This case is the latest in a series of enforcement actions by the SEC, highlighting its increased scrutiny of fraudulent activity within the cryptocurrency market. Industry observers say the case underscores the urgent need for clearer regulations and greater investor education in the fast-evolving digital asset space.
