The US Securities and Exchange Commission (SEC) accused the founder of the now-abandoned crypto and currency exchange company PGI Global of violating federal securities legislation and claiming he operated a “Ponzi-like scheme” that investors with almost $ 200 million and spent $ 57 million for customer Luxuria.

Ramal Palafox, 59, from Las Vegas, Nevada, also faces parallel criminal charges tied to his role at PGI Global. In March, a Virginia Grand Jury accused him of a scattered 23 count accusation that included eight censuses of wire fraud. Due to what prosecutors described as Palafox’s “significant ties” to the Philippines, including dual citizenship, the judge, who monitored his criminal case, issued an order on Tuesday that he should remain in custody so far.

According to court documents, PGI Global was a cryptoin investment scheme that ran from January 2020 to October 2021. About 90,000 investors around the world bought membership packages with either Bitcoin or Fiat currency promising hefty returns on their investments – up to 3% daily and a 200% total return. But instead of actually investing his clients’ money, prosecutors say Palafox used over a quarter of funds unfairly to enrich themselves and his family members and used the rest to pay back former investors in the scheme until it collapsed.

“Palafox used the cover of innovation to lure investors to lining pockets with millions of dollars while leaving many victims empty-handed,” said Laura d’Altaird, head of SEC’s new cyber and new technologies in a press release. “In reality, his false claims about expertise in the crypto industry and a suspected AI-driven auto-trading platform were just masked an international securities fraud.”

Since the beginning of US President Donald Trump’s second period in January, SEC has revised his approach to crypto regulation, dropping of investigations, and some lawsuits against cryptic companies tied to alleged surpluses of securities. But despite his face on the so-called “regulation-for-enforcement”, which was practiced during former President Gary Gensler’s term of office, SEC has promised that it will continue to go for crypto-related securities fraud.

Similarly, DOJ has narrowed its approach to crypto-related prosecution, dissolution of his crypto task force and instructed staff not to punish violation of regulatory violations in cases involving crypto. In a memo to the staff last month, Deputy Attorney Todd Blanche told prosecutors to focus their efforts to go for “people sacrificing digital asset investors.”

In Palafox’s case, SEC aims to get the investors’ money back, plus interest and civilian sanctions as well as get injured relief that would prevent him from similar crimes in the future. SEC is also trying to get money back from several of Palafox’s family members, including his wife, Marissa Mendoza Palafox, and his brother -in -law, Darvie Mendoza.

In a submission to the court, DOJ has said that Palafox-if it has been found guilty-at least 108-135 months in prison “or 9 to 11 years.

Palafox’s lawyer refused to comment.