The CEO of Praetorian Group International (PGI), Ramil Ventura Palafox, has admitted guilt in a massive fraud involving a Bitcoin pyramid scheme that deceived over 90,000 investors worldwide.
This is reported by Finway
Case Overview: A Large-Scale Financial Fraud
According to the investigation, 60-year-old Palafox, who holds citizenship in the United States and the Philippines, managed PGI, acting as its main promoter. He convinced potential investors that the company specialized in Bitcoin trading and promised daily returns ranging from 0.5% to 3%. However, PGI was not actually engaged in the claimed activities, and payments to clients were made solely from the influx of new funds, which is a classic Ponzi scheme.
“From December 2019 to October 2021, over 90,000 investors worldwide invested more than $201 million in PGI, including $30.2 million in fiat and at least 8,198 BTC worth $171.5 million,” court documents state.
In total, affected investors lost over $62.6 million. To maintain the illusion of successful investments, Palafox created a special website where users were shown falsified data about the supposed stable growth of their investments.
Use of Funds and Consequences for the Defendant
Palafox spent part of the funds on personal expenses. In particular, he purchased 20 luxury cars worth $3 million (including Porsche, Lamborghini, McLaren, Ferrari, Bentley), penthouses in hotel complexes for $329,000, real estate in Las Vegas and Los Angeles worth $6 million, as well as designer clothing, jewelry, and accessories worth $3 million (including products from Gucci, Versace, Cartier, Rolex, Hermes). Additionally, over $800,000 in fiat and 100 BTC (worth about $3.3 million at the time) were transferred to a family member’s account.
Palafox faces up to 40 years in prison, with sentencing scheduled for February 3, 2026. He has also agreed to pay restitution of $62.7 million.
“The portal continuously and fraudulently displayed growth in investment value, misleading investors into believing their investments were profitable and secure,” the prosecution noted.
The prosecution emphasized that actual sentences for federal crimes are typically lower than the maximum penalties.
It is worth noting that in August 2024, the U.S. Securities and Exchange Commission charged two brothers, Jonathan and Tanner Adams, and their companies with creating a $60 million cryptocurrency Ponzi scheme. In October of the same year, a federal court in Las Vegas sentenced a former attorney for organizing a $15 million crypto pyramid scheme.