90,000 Investors Scammed in $201M Bitcoin Ponzi Scheme as CEO's Luxury Spree Exposed

The U.S. Department of Justice announced that Ramil Ventura Palafox, 60, the CEO of Praetorian Group International (PGI), has pleaded guilty to wire fraud and money laundering for orchestrating a $201 million Bitcoin Ponzi scheme that defrauded over 90,000 investors globally. Palafox, a dual U.S.-Philippines citizen, admitted to operating a fraudulent cryptocurrency trading platform that promised daily returns of 0.5% to 3% through non-existent Bitcoin trading activities. Court documents revealed that PGI raised over $201 million between December 2019 and October 2021, including $30.3 million in cash and 8,198 Bitcoin valued at $171.5 million at the time. The scheme collapsed in late 2021 after PGI’s website was seized by regulators.

The fraudulent operation relied on a classic Ponzi structure, using funds from new investors to pay returns to earlier participants. Palafox created a deceptive investor portal that displayed fabricated account balances to maintain the illusion of profitability. Prosecutors emphasized that PGI lacked the operational capacity to generate the promised returns, with no legitimate trading program behind the claims. The scheme’s collapse left victims with significant losses, estimated at $62.7 million, after payouts and recoveries.

Palafox’s misuse of investor funds extended to personal luxuries, including $3 million spent on 20 high-end vehicles (e.g., Lamborghini, Ferrari, and Porsche models), $6 million on four homes in Las Vegas and Los Angeles, and $329,000 on penthouse hotel stays. Additional expenditures included $3 million on designer clothing, watches, and jewelry from brands like Rolex, Cartier, and Hermes. Court filings also revealed that Palafox transferred $800,000 in cash and 100 Bitcoin (worth $3.3 million) to a family member.

The U.S. Securities and Exchange Commission (SEC) previously charged Palafox in April 2025 for defrauding investors in a crypto and forex Ponzi scheme. As part of his plea agreement, Palafox agreed to pay $62.7 million in restitution to victims. He faces a maximum of 40 years in prison but is expected to receive a lesser sentence under federal sentencing guidelines. A hearing is scheduled for February 3, 2026, before U.S. District Judge Leonie M. Brinkema.

The case underscores the growing regulatory scrutiny of high-yield crypto schemes. Palafox’s guilty plea follows similar prosecutions, including the HashFlare Ponzi scheme, which netted $577 million in fraud, and the BitConnect case, which defrauded investors of $2 billion. Authorities have highlighted the recurring pattern of “too good to be true” returns and multi-level marketing tactics as red flags for crypto fraud. The U.S. Department of Justice and SEC continue to prioritize enforcement actions against fraudulent schemes, emphasizing transparency and accountability in the rapidly evolving digital asset landscape.