Ramil Ventura Palafox, the person behind Praetorian Group International (PGI), has admitted to running a massive Bitcoin Ponzi scheme. He confessed to wire fraud and money laundering charges. This scam swindled over 90,000 investors across the globe.
The U.S. Department of Justice (DOJ) confirmed Palafox’s guilty plea in a statement released Wednesday. PGI promised daily returns, sometimes as high as 3%, from supposed Bitcoin trades. In truth, Palafox just took new investor money to pay off earlier ones. He then pocketed millions for his own lavish lifestyle.
Between December 2019 and October 2021, investors poured more than $201 million into PGI. This included roughly $30.3 million in cash and 8,198 Bitcoins. Those Bitcoins were worth about $171.5 million at the time. The fraudulent setup caused at least $62.7 million in losses. All the while, the PGI website showed fake profits to keep people fooled.
CEO de PGI admite fraude con Bitcoin
90.000+ inversores; $201M recibidos; 8.198 BTC
Pérdidas ≥ $62.7M; fondos desviados a lujos
Se declaró culpable; enfrenta hasta 40 años pic.twitter.com/KRt8sF8l0o— Diario฿itcoin (@Blaze Trends)
PGI claimed to do a lot of Bitcoin trading. They promised unbelievable daily returns ranging from 0.5% to 3%. But this was a classic Ponzi scheme. Money from new investors paid off old ones. This helped Palafox keep up the lie of making money. He didn’t actually do any real trading on a large scale.
Palafox, 60, holds both U.S. and Philippine citizenship. He ran PGI and was its main salesperson. Federal prosecutors say he broke investor trust in a big way. He didn’t invest the money. Instead, he spent huge sums on himself.
Fancy Spending and Stolen Money
The DOJ laid out Palafox’s spending habits. He blew about $3 million on 20 luxury cars. This fleet included Porsches, Lamborghinis, Bentleys, McLarens, and Ferraris. He also spent $329,000 on luxury hotel penthouses. He bought homes in Las Vegas and Los Angeles for over $6 million.
He didn’t stop there. Another $3 million went to designer clothes and furniture. Brands like Gucci, Cartier, Rolex, and Hermès were among his choices. Authorities found he even sent a relative at least $800,000 in cash. He also transferred 100 Bitcoins, worth $3.3 million then, to the same relative. This clearly shows how he used stolen money for personal gain.
These findings highlight a serious problem. Scammers use the appeal of cryptocurrencies to draw in investors. They promise impossible profits. This complex, global scheme shows how tempting Bitcoin is for criminals. They often use the lack of clear rules and authorities’ supposed confusion to their advantage.
Court Case and Possible Punishment
Palafox could face up to 40 years in prison. His sentencing date is set for February 3, 2026. As part of his plea deal, he agreed to pay back about $62.7 million. However, federal sentences are usually less than the maximum. They consider sentencing guidelines and other legal factors.
The PGI case is a harsh reminder for investors. Always check crypto investment platforms very carefully. Authorities have warned many times about projects that promise quick, guaranteed money. This is especially true in a market as wild as Bitcoin.
PGI’s downfall joins a list of other crypto fraud cases. It shows why stronger rules and international oversight are so important to protect people. This court case sets an important example in the U.S. It sends a clear message to anyone thinking of running similar scams worldwide.