Overview

• Prosecutors say PGI drew more than $201 million from at least 90,000 investors between December 2019 and October 2021, including 8,198 bitcoin and over $30 million in cash.
• Marketing touted daily returns of 0.5% to 3% through bitcoin trading that did not exist at scale, with payouts funded by new deposits.
• An investor portal displayed fabricated gains, misleading victims into believing their balances were growing and secure.
• Court filings describe spending investor funds on 20 luxury cars, four homes in Las Vegas and Los Angeles, penthouse stays, designer goods, and transfers of cash and 100 bitcoin to a family member.
• The U.S. Attorney’s Office in Virginia announced the plea with the FBI and IRS Criminal Investigation after Judge Leonie M. Brinkema accepted it, and Palafox now faces up to 40 years for wire fraud and money laundering.