- PGI CEO sentenced to 20 years for running a $200M global Bitcoin Ponzi scheme.
- At least 90,000 investors lost $62.6M in fraudulent crypto trading claims.
- Investor funds financed luxury cars, real estate, and high-end purchases.
A federal court has sentenced Praetorian Group International (PGI) founder and Chief Executive Officer Ramil Ventura Palafox to 20 years in prison after he pleaded guilty to wire fraud and money laundering charges tied to a global Bitcoin Ponzi scheme.
Prosecutors said the operation, which ran from December 2019 through October 2021, collected more than $200 million from at least 90,000 investors worldwide by falsely claiming to generate profits through Bitcoin trading.
Palafox, 61, a dual citizen of the United States and the Philippines, served as PGI’s chairman, CEO, and primary promoter. According to court filings, he admitted in September 2025 that the company did not conduct Bitcoin trading at a level capable of producing the daily returns of 0.5% to 3% that were promised to investors.
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Scheme Collected Over $200 Million
Government records show that investors contributed more than $201 million during the scheme’s operation. That total included at least $30,295,289 in fiat currency and 8,198 Bitcoin valued at approximately $171,498,528 at the time referenced in court documents.
Authorities stated that PGI did not generate legitimate trading profits. Instead, funds from new participants were used to pay earlier investors. As a result of the fraudulent activity, total investor losses reached at least $62,692,007.
To enhance the appearance of profitability, Palafox created an online portal that allowed investors to track their accounts. Between 2020 and 2021, prosecutors said the website falsely displayed consistent gains, misrepresenting the performance and security of investor funds.
Investor Funds Used for Personal Purchases
Court documents detail how Palafox spent large amounts of investor money on personal expenses and luxury assets. Prosecutors reported that he used approximately $3 million to purchase 20 luxury vehicles, including models from Porsche, Lamborghini, McLaren, Ferrari, BMW, and Bentley.
He also spent about $329,000 on penthouse suites at a luxury hotel chain and acquired four homes in Las Vegas and Los Angeles valued at more than $6 million. An additional $3 million was used to purchase clothing, jewelry, watches, and furnishings from high-end retailers.
Investigators further disclosed that Palafox transferred at least $800,000 in fiat currency and 100 Bitcoin, then valued at roughly $3.3 million, to a family member. The FBI’s Washington Field Office and the IRS Criminal Investigation Division assisted in the case.
Related: Celsius Founder Joins SBF, Do Kwon in Lineup of Prosecuted Crypto Founders
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Source: https://coinedition.com/praetorian-group-international-ceo-sentenced-to-20-years-for-200m-bitcoin-ponzi-scheme/
