- The UK offshoot of a fraudulent American crypto funds has been wound up
- The UK High Court has closed the company after revelations of illegal activity in the US
- PGI Global used social media to promote huge returns on investments that were never paid
British authorities have shut down PGI Global UK Ltd, a crypto trading company connected to an American parent organization that has itself been shut down by U.S. authorities. PGI Global was a UK offshoot of Praetorian Group International Trading Inc., which used social media platforms to promise returns on cryptocurrency investments and was the target of action by the Securities and Exchange Commission (SEC) last year. The UK High Court wound up the company last month after action taken against its U.S. parent, with British authorities claiming that its executives siphoned more than $700,000 from investors.
Praetorian Group Used Social Media to Attract Investors
Praetorian Group International Trading Inc. had its website seized by the U.S. Department of Justice and U.S. Department of the Treasury last year following a seizure warrant issued by the US District Court of the Eastern District of Virginia.
Attention then turned to its foreign offshoots, with British Insolvency Service investigating taking over once financial crime investigators had highlighted it as a potential target. The company’s sole appointed director is Ramil Ventura Palafox, a U.S. who did not cooperate with the Insolvency Service investigation.
Over $700,000 Taken
Two former directors have conflicting accounts of the company’s trading activity, but it seems that the UK operation was just an extension of the U.S. one, with investors promised returns of up to 200% – a sure sign of a cryptocurrency investment scam. When these returns didn’t materialize, they were not allowed to withdraw their funds.
Online reviews of PGI reveal that some users invested massively into the scheme:
Three bank accounts were identified as operated by PGI and were used to receive approximately £612,425 ($708,00) from its would-be investors between July 2020 and February 2021, with at least £195,000 ($226,000) going to personal accounts.
PGI Global UK Ltd was wound up by the High Court last month and the Official Receiver has been appointed liquidator of the company.