A U.S. judge has sentenced Ramil Ventura Palafox, 61, the founder and CEO of Praetorian Group International (PGI), to 20 years in prison for orchestrating a massive global Bitcoin Ponzi scheme that defrauded more than 90,000 investors of over $201 million.
Deceptive Trading Promises
Palafox, a dual citizen of the United States and the Philippines, positioned PGI as a Bitcoin trading powerhouse. From December 2019 to October 2021, he lured investors with promises of daily returns ranging from 0.5% to 3%. In reality, PGI was not trading Bitcoin at a scale capable of delivering such profits. Instead, Palafox recycled investor funds to pay earlier participants — a classic Ponzi tactic.
During the scheme, PGI collected more than $30 million in fiat currency and at least 8,198 Bitcoin valued at approximately $171 million. Prosecutors said victims ultimately lost $62.6 million. To sustain the illusion, Palafox launched an online portal that falsely showed investments growing in value, convincing victims their money was safe.
Lavish Spending Spree
Court filings revealed Palafox spent millions of investor dollars on luxury goods and real estate. This included 20 high-end cars worth $3 million, featuring brands like Lamborghini, Ferrari, Porsche and Bentley, as well as four homes in Las Vegas and Los Angeles valued at more than $6 million. He also spent $329,000 on penthouse suites at luxury hotels and $3 million on designer clothing, jewelry and watches from Gucci, Versace, Cartier, Rolex and Hermes. Furthermore, he transferred $800,000 in cash and 100 Bitcoin — then worth $3.3 million — to a family member.
Investigation and Sentencing
The case was investigated by the FBI Washington Field Office and the IRS Criminal Investigation Washington, D.C., Field Office. Assistant U.S. Attorneys Jack Morgan and Annie Zanobini, along with former Assistant U.S. Attorney Zoe Bedell, led the prosecution. The judge handed down the 20-year sentence, closing a chapter on one of the largest Bitcoin Ponzi schemes in history.