A U.S. federal court sentenced the CEO of a crypto trading and multi-level marketing firm to 20 years in prison Thursday for orchestrating a massive Bitcoin-based Ponzi scheme. Ramil Ventura Palafox, 61, former CEO and Chairman of Praetorian Group International (PGI), was convicted on multiple federal charges including wire fraud and money laundering.
20-year sentence: 90,000 investors duped out of $200 million
According to court documents, Palafox used PGI to lure over 90,000 investors into a purported Bitcoin trading program promising daily returns of 0.5% to 3%. But prosecutors said the program never engaged in genuine trading. Instead, returns were paid with new investor funds — a classic Ponzi mechanism. Victims from around the world collectively invested more than $200 million, with documented losses for many individuals exceeding tens of millions.
Lavish spending: from Porsches to Rolexes
The Department of Justice statement detailed how Palafox spent investor money on personal extravagance. He spent approximately $3 million on 20 luxury vehicles including Porsche, Lamborghini, McLaren, Ferrari, BMW, and Bentley. Another $329,000 went to penthouse suites at a luxury hotel chain. He purchased four homes in Las Vegas and Los Angeles worth more than $6 million. An additional $3 million was spent on clothing, watches, jewelry, and home furnishings at luxury retailers like Louboutin, Neiman Marcus, Gucci, Versace, Ferragamo, Valentino, Cartier, Rolex, and Hermes.
Prosecutors said these personal expenses had nothing to do with investment activity, directly worsening investor losses.
The scheme timeline and aftermath
The Bitcoin Ponzi scheme operated between December 2019 and October 2021. Palafox initially pleaded guilty in September 2025 to fraud and money laundering charges. The FBI's Washington Field Office and IRS Criminal Investigation Division assisted the case. Some victims have already received restitution orders, and authorities continue tracking down remaining assets to repay those defrauded.