A federal judge has sentenced Ramil Ventura Palafox, CEO of Praetorian Group International, to 20 years in prison for orchestrating a $200 million cryptocurrency Ponzi scheme. The dual US-Philippine citizen defrauded tens of thousands of investors by falsely promising daily Bitcoin trading returns. Prosecutors stated victims suffered losses of at least $62.7 million.
A U.S. federal judge in Virginia sentenced **Praetorian Group International** CEO Ramil Ventura Palafox to 20 years in prison for a massive cryptocurrency investment fraud. The 61-year-old was convicted of wire fraud and money laundering for running a Ponzi scheme that prosecutors said defrauded tens of thousands of investors.
According to the Department of Justice, the scheme falsely promised daily returns of up to 3% from Bitcoin trading. Investors poured over $201 million into PGI between December 2019 and October 2021, including at least 8,198 Bitcoin valued at about $171.5 million at the time.
Court filings said Palafox told investors PGI was engaged in large-scale Bitcoin trading capable of generating consistent profits. Prosecutors stated the company was not trading at a level sufficient to support the promised returns and instead used new investor funds to pay earlier participants.
Authorities said Palafox spent millions in investor funds on personal luxury expenses. These purchases included $3 million on luxury vehicles, over $6 million on homes, and hundreds of thousands of dollars on penthouse suites and high-end retail.
The criminal case follows a parallel civil action by the Securities and Exchange Commission. The SEC’s complaint alleged that Palafox misrepresented PGI’s Bitcoin trading activity and used new investor money to pay earlier participants.
The scheme began to unravel as regulators scrutinized PGI’s trading claims and fund flows. Authorities had seized the company’s website in 2021, and related operations were shut down in the United Kingdom.
The DOJ said victims may be eligible for restitution. It directed them to the U.S. Attorney’s Office website for information on filing claims.
