A U.S. federal court has sentenced Ramil Ventura Palafox, the 61-year-old former CEO and Chairman of Praetorian Group International (PGI), to 20 years in prison for orchestrating a massive Bitcoin-based Ponzi scheme that defrauded tens of thousands of investors worldwide.
According to the U.S. Department of Justice, Palafox's scheme operated between December 2019 and October 2021, luring more than 90,000 investors with promises of daily returns ranging from 0.5% to 3% through a purported Bitcoin (BTC) trading program. Prosecutors revealed the program never engaged in genuine trading, instead using funds from new investors to pay returns to earlier participants—the hallmark of a classic Ponzi scheme.
Court documents show victims collectively invested over $200 million, with documented losses exceeding tens of millions for many individuals. The DOJ specified that victims lost at least $62.7 million, while Palafox misappropriated millions for lavish personal expenses.
Investor funds were funneled into extravagant purchases, including approximately $3 million spent on 20 luxury vehicles from brands like Porsche, Lamborghini, Ferrari, and Bentley. Palafox also spent $329,000 on penthouse suites at luxury hotels, purchased four homes in Las Vegas and Los Angeles worth over $6 million, and allocated another $3 million for clothing, watches, jewelry, and furnishings from high-end retailers including Gucci, Versace, Cartier, Rolex, and Hermès.
Palafox, a dual U.S.-Filipino citizen, initially pleaded guilty in September 2025 to federal charges including wire fraud and money laundering. The FBI's Washington Field Office and IRS Criminal Investigation Division assisted in the investigation. Some victims have already been granted restitution orders, and authorities continue efforts to track down remaining assets for repayment.
The sentencing demonstrates the DOJ's ongoing crackdown on cryptocurrency fraud, with similar actions having recovered over $1 billion from crypto scams since 2020.
