PGI Global Found Guilty Of Running Fraudulent Crypto-Scam

PGI Global UK Ltd. was found guilty of running a fraudulent crypto-currency scam, and the United Kingdom High Court appointed an Official Receiver as its Liquidator, according to a statement by the UK government on Thursday.

PGI is in the business of marketing, distributing, importing, exporting, and importing at wholesale and retail, as allowed by law, all types of commodities, wares, and goods of every available form. They also provide a range of health items and cryptocurrency trading.

After allegedly scamming investors of about $709,000 (612,425 pounds) between July 2020 and February 2021, the firm was shut down by the UK High Court. At least £195,000 was transferred from the accounts to personal accounts, and £10,000 was transferred to a luxury department store.

Although two former directors gave differing versions of the company’s trading activities, it seems that PGI’s primary business activity was the buying and selling of cryptocurrencies.

However, Ramil Ventura Palafox, a resident of the United States, was chosen as the company’s lone director. He refused to assist in the Insolvency Service’s investigation.

Court Takes Action Against The Crypto Scam

Globally, governments perceive cryptocurrency fraud to be a hassle. It involves a substantial sum of money, and the fraudsters’ strategies change as technology advances.

After it was found that PGI is a member of this group, a seizure warrant was issued by the US Department of Justice and Treasury, causing the Praetorian Group International Trading Inc. website to be taken down.

Given the lack of collaboration, inability to keep, preserve, and deliver acceptable accounting documents, trading with a lack of commercial probity, failure to comply with statutory responsibilities, and lack of transparency, the High Court concluded that terminating the firm was in the public interest.

Related Reading | BitOasis Teams Up With MasterCard To Offer Crypto Card Programs Across MENA

The Insolvency Service’s Mark George, Chief Investigator, stated:

Individuals and businesses that operate under the protections afforded by limited liability are, as a consequence, required to comply with the requirements of the Companies Act. This case highlights that where we have reasonable concerns about the trading practices of a company, the court will take a dim view of any failure to cooperate with a statutory inquiry and will wind up the company in the public interest.

Over the past year, cryptocurrency acceptance has grown significantly. Although the bitcoin sector has grown quickly, there has been increased criminal behavior related to it.

Comments (No)

Leave a Reply